Swiss food giant Nestle, is negotiating an alliance in the North and South American dairy markets with New Zealand's newly formed Fonterra Co-operative Group Ltd, the company reported this week. The two firms aim to form "a number of joint ventures" that would still be subject to regulatory clearance, Nestle said in a statement. Fonterra is the newly formed dairy processor and marketer created through the merger of almost all of New Zealand's dairy industry, including the NZ Dairy Board. The joint ventures with Nestle would cover milk foods and beverages but not cheese, butter or infant formula, Fonterra said in a statement. "Our two companies will complement each other in what is without doubt New Zealand's biggest ever commercial deal," Fonterra chief executive Craig Norgate said. Benefits would include joint sales programmes, sharing assets, and "optimal use of research and development", he added. Known previously by its working title of Global Dairy Co, Fonterra brings together the New Zealand Dairy Group, Kiwi Co-operative Dairies and the Dairy Board. Formal completion of the merger is expected in October once the enabling legislation is passed by the New Zealand parliament. According to an IndustrySearch reporter Fonterra, has more than $NZ 11 billion in assets, operates in 120 countries, earns more than 20 per cent of New Zealand's export receipts and generates seven per cent of GDP.
