Fonterra and A-ware to set up dairy plants in Netherlands

New Zealand-based multinational dairy Fonterra and Netherlands-based A-ware Food have entered into a partnership to build a new cheese plant and dairy ingredients facility in Heerenveen, Netherlands.

Under the agreement, a greenfields site will be established where A-ware will operate a cheese plant and Fonterra will operate a dairy ingredients facility alongside.

While cheese produced in the new plant will be distributed for A-ware’s customers across Europe, the whey and lactose produced will be processed into premium nutrition dairy ingredients for the global customer base of Fonterra.

Construction of both plants is scheduled to be complete in late 2014.

Fonterra CEO Theo Spierings said that the investment fitted with the strategic priorities of both companies.

"Fonterra has substantial intellectual property in the manufacture of functional whey protein ingredients and has been looking for some time for a source of high quality whey to enable it to commercialise these innovations for customers around the world," Spierings said.

A-ware Food Group CEO Jan Anker added that the company was well-positioned to integrate the new cheese plant into its supply chain so that it can expand its service offering with increased flexibility for a growing customer base in Europe.

Fonterra and A-ware announced plans for a joint venture in May 2012, in an effort to leverage their respective supply chains.

Last week, Fonterra said it would invest more than NZD100m ($81.9m) in a new ultra-high temperature (UHT) milk processing plant at its Waitoa site in Waikato.

According to the New Zealand-based company, the new plant will increase its UHT production by 100% over the next few years.