Fonterra and A-ware go Dutch

New Zealand-based Fonterra and Dutch company A-ware Food Group have been given the green light to develop a new cheese and dairy ingredients plant in Heerenveen in the Netherlands. Construction of both plants is scheduled to be completed in late 2014.

Under the companies’ agreement, a greenfield site will be developed where A-ware will operate a cheese plant and Fonterra will operate a dairy ingredients plant alongside it. Cheese will be produced for A-ware’s European customers and the whey and lactose will be processed into premium nutrition dairy ingredients for Fonterra’s global customer base.

According to Fonterra CEO Theo Spierings, the investment fits well with the strategic priorities of both companies.

“Fonterra has substantial intellectual property in the manufacture of functional whey protein ingredients and has been looking for some time for a source of high-quality whey to enable it to commercialise these innovations for customers around the world.”