Glanbia, the Irish dairy products and ingredients manufacturer, is to move into the Latin American market following an agreement with Uruguayan dairy co-op Conaprole.
The two companies will jointly control Mexico-based Conabia, which will develop commercial opportunities for the full range of dairy ingredients manufactured by Conaprole in Uruguay and by Glanbia in the USA and EU. Conabia will initially serve markets in Mexico, the Caribbean and Central and South America.
In addition, Glanbia will have the exclusive rights to promote Conaprole whole milk powders in Africa.
The deal also includes a technology transfer agreement by which the Irish group will share its expertise in the area of processing, in particular focusing on producing added value products. The agreement also allows for joint venture manufacturing where appropriate opportunities arise.
Commenting on the agreement, John Moloney, group managing director of Glanbia, said: "We welcome this opportunity to work closely with Conaprole in the establishment of a vigorous sales and marketing business for Central and South America. This agreement is highly beneficial to both parties as it provides the necessary production capabilities and product mix to meet the considerable opportunities available in these markets. Conaprole is an excellent partner for Glanbia and we look forward to working together in the coming years."
Speaking for the Board of Conaprole, general manager Ruben Nuñez added: "We are very pleased to have entered into this strategic alliance with one of the most important dairy companies in the world. For Conaprole, this represents a huge step in our evolution as a multinational dairy company. We have succeeded in aligning and complementing not only our business objectives and mutual strengths but, more significantly, our corporate cultures and a shared vision of the future. We feel sure that this will be the beginning of a deeper process of co-operation between our organisations."