Dairy Partners spreads LatAm footprint

Related tags Milk

Dairy Partners America, the joint venture between Switzerland's
Nestlé group and Fonterra, New Zealand's leading dairy company, has
completed the second phase of its roll out, beginning liquid and
powdered milk production in Ecuador, Colombia and Trinidad and

The working partnership began in 2002 and was created to allow both companies to improve their supply of fresh milk and milk ingredients throughout the Americas, as well as enabling them to build strong positions in the underdeveloped chilled and liquid milk sectors there.

The first phase of the venture was completed in January 2003, when Nestlé and Fonterra set up a regional management organization for DPA. The deal also included the acquisition by Nestlé of Fonterra's milk powder business in Venezuela and various other countries in Central America, the Caribbean, Dominican Republic and Peru.

The latest move will see the venture begin milk powder production in Ecuador and Columbia, as well as rolling out a range of chilled dairy products in Ecuador and in Trinidad and Tobago. The new DPA joint ventures in Ecuador and Colombia are set to begin operations on 1 July this year.

DPA currently collects fresh milk and produces basic milk powders in Brazil and Argentina, as well as running chilled dairy facilities in a number of other South American countries. The individual joint ventures within the alliance cover 11 sites with over 3,000 employees, sourcing in the region of 2.2 billion litres of fresh milk annually.

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