NZ$45m dairy distribution centre for Brazil

Fonterra and Nestlé have opened a NZ$45 million dairy distribution centre in Brazil through joint venture Dairy Partners Americas (DPA).

The facility has been built on the same site as the DPA Araras factory, which makes a variety of chilled dairy products including yoghurts, desserts and cream cheese. More than 200,000 tonnes of dairy products are expected to pass through the distribution centre each year.

Combining the production and cooling site with the distribution facility will offer considerable energy savings, reducing the amount of diesel required for transport by approximately 150,000 litres and saving 400 tonnes of CO₂ each year.

Fonterra CEO Theo Spierings and Nestlé CEO Paul Bulcke at the opening of the new DPA distribution centre in Araras Brazil. Image: Fonterra.

“Brazil is an important market for Fonterra. Rapid urban growth and a focus on healthy nutrition are driving demand for dairy products and we continue to invest significantly in the region through our partnership with Nestlé and by developing selected milk pools,” said Fonterra CEO Theo Spierings.

“The new centre enables us to lower distribution costs and move product quickly across the country. And it is leading the way in sustainability, using efficient systems, reducing gas emissions and waste, and increasing recycling and the safety of our people.”

Fonterra’s Latin American footprint drives more than 900,000 metric tonnes of volume per year and NZ$3.4 billion in revenue from consumer dairy, food service and high-value ingredients. As well as extending Fonterra’s business portfolio, the DPA partnership also enables the cooperative to work with dairy farms in the region to improve milk quality, safety and sustainability.