Fonterra to join Columbia River Technologies JV as equal shareholder

Fonterra Co-operative Group is set to join the whey protein concentrate and lactose manufacturer Columbia River Technologies joint venture (JV) as an equal shareholder.

Originally founded in 2013, Columbia River Technologies is a JV between US dairy co-operative Tillamook County Creamery Association (TCCA) and dairy producer Threemile Canyon Farms.

The company has been producing whey protein products for the past five years at a production facility in Boardman, Oregon.

The facility is located adjacent to the TCCA’s satellite cheesemaking plant.

Fonterra noted that it has the exclusive sales agency for these products since 2013.

The JV was established by the two companies in a bid to increase efficiencies at TCCA’s cheesemaking plant while increasing value from the natural whey and lactose by-products of the cheesemaking process.

Fonterra Ingredients America regional director Joe Coote said joining the JV as an equal shareholder enables the company to address growing demand for ingredients such as whey protein from places outside New Zealand.

Coote said: “The agreement reflects Fonterra’s move to develop a sustainable US-sourcing network, providing a reliable and efficient chain of supply, and complementing New Zealand-sourced ingredients for our sports and infant nutrition customers.”

Coote further added that the agreement also demonstrates the company’s commitment to its partners in the US market.

Threemile Canyon Farms general manager Marty Myers said: “This agreement represents the logical alignment of three successful businesses with compatible core principles and values.

“It leverages each company’s expertise and resources, and reinforces an already strong alliance for future strategic growth.”