Fonterra-Nestle JV opens new dairy distribution facility in Brazil

Dairy Partners Americas (DPA), a joint venture between New Zealand-based dairy giant Fonterra and Swiss food major Nestle, has opened a NZ$45m dairy distribution facility in Araras, Brazil.

Built on the same site as DPA’s Araras factory, the new facility processes more than 200,000t of dairy products every year for delivery throughout Brazil.

Fonterra CEO Theo Spierings said that Brazil is an important market for Fonterra as rapid urban growth and a focus on healthy nutrition are driving demand for dairy products.

Spierings said, "The new centre enables us to lower distribution costs and move product quickly across the country. And it is leading the way in sustainability using efficient systems, reducing gas emissions and waste, and increasing recycling and the safety of our people."

Established in 2003, DPA is the largest dairy company in South America, purchasing and processing over two billion litres of milk each year in Brazil alone.

The company produces ingredients and consumer products catering to the liquid and chilled dairy market in Latin America.

DPA currently employs 2,600 people and operates eight factories in Brazil.

Fonterra produces over 900,000t of volume per year and generates NZ$3.4bn in revenue from its Latin American operations.

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Image: Fonterra CEO Theo Spierings and Nestle CEO Paul Bulcke at the opening of Dairy Partners Americas’ new distribution centre in Araras, Brazil. Photo courtesy of Fonterra Co-operative Group.