New Zealand-based dairy company Fonterra has entered into a five-year strategic alliance with Bellamy’s to produce a new range of infant formula powders in Australia.
Bellamy's Australia will supply organic ingredients to Fonterra for the production of the baby formula foods at the latter's Darnum factory in Victoria.
Fonterra managing director Oceania Judith Swales said: "We are actively growing our nutritionals business through strategic partnerships and agreements which will see the Darnum nutritionals plant move towards full capacity.
"Our Australian business has particular ingredients strengths in cheese, whey and nutritionals, complemented by our strong consumer and foodservice businesses; and today's announcement with Bellamy's Australia - one of the fastest growing infant formula companies - reaffirms our strength in nutritionals."
Fonterra plans to manufacture nutritionals at the Darnum plant by using inputs from its New Zealand-based Fonterra Research and Development Centre, in order to cater to the growing demand.
Bellamy's is an infant formula company with expertise in the organic ingredient supply chain. Its revenues grew by 156% in the financial year 2014-15.
The alliance with Fonterra is expected to help Bellamy's organic growth in Australia and abroad.
Fonterra will also finalize the Darnum joint venture with Beingmate Baby and Child Food by the end of this year, with the recent formal approval by Beingmate's board and shareholders.
The company bought a 20% stake in China's Beingmate in March for $553m. A part of the deal involves establishment of a joint venture to purchase the Darnum plant.
Earlier this month, the New Zealand dairy cooperative sold 50% stake in DairiConcepts to US-based cooperative Dairy Farmers of America (DFA) for $126.7m.
DairiConcepts was a joint venture between Fonterra and DFA.
