Fonterra spends NZ$30m to gain control of Chilean milk processor
New Zealand’s Fonterra has raised its interest in Chile-based milk processor Prolesur with the purchase of an additional 13.6 per cent stake for NZ$29.3 million.
The purchase is part of the dairy giant’s plans to streamline operations in the country, and brings its stake in Prolesur to 99.9 per cent.
Prolesur sells mostly to Soprole, a dairy company in Chile 99.9 per cnet owned by Fonterra.
Kelvin Wickham, Fonterra’s chief executive officer for Africa, the Middle East, Europe, North Asia and the Americas (AMENA), said the move would help integrate the two businesses.
“Prolesur and Soprole are both strong businesses but their recent performance has been impacted by challenging market conditions,” Wickham said.
“Having the two more closely integrated will generate operating efficiencies across the supply chain from milk collection, to processing and administration.”
Fonterra recently announced plans to phase out overseas milk production centres after it reported a record NZ$557 million annual loss in September.