Fonterra Buys Stake In US Whey Protein And Lactose Manufacturer
New Zealand dairy cooperative Fonterra is buying a stake in American venture Columbia River Technologies as an equal shareholder, along with US dairy co-op Tillamook County Creamery Association (TCCA) and dairy producer Threemile Canyon Farms.
Co-founded by TCCA and Threemile Canyon Farms in 2013, Columbia River Technologies is an Oregon-based whey protein concentrate and lactose manufacturer.
Fonterra's regional director for ingredients America, Joe Coote, sees the investment as a natural progression and a commitment to its partners in the US market. The move will enable the group to meet the growing demand for ingredients such as whey protein from outside New Zealand.
“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,” said Coote.
Columbia River Technologies produces whey protein products at its production facility in Boardman, Oregon, adjacent to the TCCA’s satellite cheese making plant.
Fonterra was an early customer of the joint venture. It had the exclusive sales agency for Columbia River Technologies products since 2013, and also shared its dairy expertise through onsite technical support and training.
TCCA president and CEO Patrick Criteser said that the company is pleased to further strengthen its relationship with Fonterra.
Criteser added that the joint venture aligns with TCCA’s strategy to make responsible use of by-products from its cheese-making business and continue to create value for its farmer-owners.
General manager of Threemile Canyon Farms, Marty Myers, said that the 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,” he added.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Kevin Duggan. Click subscribe to sign up to ESM: The European Supermarket Magazine.