Thursday, January 15, 2015

The Swiss multinational Nestlé announced yesterday the end of the partnership that held since 2003

Nestlé and Fonterra empty partnership in Latin America
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The Swiss multinational Nestlé announced yesterday the end of the partnership that held since 2003 with the New Zealand cooperative Fonterra in milk catchment area in Latin America. Called Dairy Partners Americas (DPA), the joint venture between Nestlé and Fonterra led the collection of milk in Brazil.
In a statement, Nestle said the partnership has performed well over the past decade. However, justified the company, "this is the right time to realign the partner." The changes also depend on regulatory approval. methods of preserving fish
The decision to change the "scope" of the partnership occurs less than five months after the DPA open, with the distinguished presence of the CEOs of Nestlé and Fonterra, a distribution center in Araras (SP) received investments of over R $ 90 million. At the time, there was no indication that the joint venture could be broken.
The end of the partner in the catchment area does not mean, however, that the DPA was totally closed. According to Nestlé, the joint venture with Fonterra involved two arms, one related to the capture and production of milk powder and other associated with the marketing of dairy chilled, like fermented milk Chamyto.
With the change announced yesterday, all the powdered milk plants before operated by the joint venture in Brazil, Argentina, Ecuador and Colombia return to the ownership and operation of Nestlé. In all, six factories in Brazil. In 2012, DPA purchased methods of preserving fish 1.9 billion liters of milk in Brazil, the largest volume of all companies in the sector, according to the latest annual survey of milk Brazil, association of producers.
In the area of dairy chilled, however, the joint venture will continue to exist. However, Fonterra will hold 51% of the business in Brazil, and Nestlé, with 49%. Before, the two partners had equal stakes. methods of preserving fish
In addition to the changes in Brazil, the business of liquid milk DPA will be in Ecuador with Nestlé, and the chilled segment methods of preserving fish and liquid milk in Venezuela returns to Fonterra, which will operate with a local partner in the country.
In the evaluation of Rafael Ribeiro, an analyst with Scot Consulting, the end of the partnership in raising milk should not bring a structural change for the Brazilian dairy market. "Nestlé will follow firm as the company methods of preserving fish that collects and sells milk," he says.
The analyst says, however, that the end of the partnership may cause a change in milk procurement policy by the Swiss company. Currently, methods of preserving fish says Ribeiro, DPA gets about 50% of the milk in the spot market, ie persons other than the farmer himself.
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