BREAKING NEWS

Fonterra invests in Rokiskio

Fonterra Co-operative Group from New Zealand has extended a long-term commercial agreement with Lithuania's largest dairy producer, AB Rokiskio Suris, through a 10 percent stake in the company's shares.

Fonterra, through Rabobank's turnover in 2017 classified as sixth dairy company worldwide, has invested € 7.1 million in Rokiskio. By doing so, they have secured a supply line of high quality whey products, while at the same time making product options for all of Europe and the Middle East. This also offers opportunities for sources of further dairy products in the Baltic milk segment in order to meet the growing demand from the nearby markets.
President John Wilson of Fonterra said that the investment closely matches Fonterra's strategy to expand the global sources of milk in strategic locations such as Europe, so that the cooperative group can meet customer demand near these sources.

"Our New Zealand farmers will always be our first source of milk, but we must increasingly adapt to our growth and the associated returns through strategic partnerships in Europe, Latin America, Australia and China . These partnerships enable us to to produce the products that are demanding closer to the market and offer more opportunities for the milk and milk products we make elsewhere. "

The CEO of Fonterra , Theo Spierings , stated that this development is based on the current, long-term relationship between Fonterra and Rokiskio as a supplier and will be beneficial for both companies.

"Our ability to access high quality whey ingredients is becoming more and more important as demand grows, especially in the markets in Eastern and Western Europe, the Middle East and North Africa. Rokiskio is also a highly respected cheese producer and that also offers us further opportunities to meet customer demand in these markets. This is a new step in our strategy to develop a sustainable European network of resources that provide a reliable and efficient supply chain and a complement to the ingredients from New Zealand. "

According to the chairman of Rokiskio Suris, Dalius Trumpa , Rokiskio emphasizes product quality and safety, in addition to environmental performance, and brings the company these important strengths in the relationship with Fonterra. The contractual production with Fonterra has played a role in the expansion capacity and development of the company in 2014 and 2016 and he is optimistic about future growth opportunities.

"We have worked closely together as commercial partners for five years, and during that time we have established a strong relationship. With the investment of Fonterra in Rokiskio Suris, our company is building a new and global level, creating new export opportunities that are more valuable in us local milk segment, "said Mr. Trumpa. "By welcoming Fonterra as a shareholder, future growth can be accelerated through access to new markets and investment in new technologies."

Rokiskio has three factories in Lithuania, producing cheese, butter, whey protein and milk powder. The company is one of the largest and most famous cheese producers in Central and Eastern Europe, producing more than 30 thousand tons of cheese each year. The company exports to the markets of both the East and the West and further produces a wide range of fresh dairy products for the Baltic regions.

Over Fonterra  
Fonterra  is a world leader in dairy foods and the preferred supplier of dairy ingredients from many of the world's leading food companies. Fonterra is also a market leader with proprietary brands of dairy products in Australia / New Zealand, Asia / Africa, the Middle East and Latin America. 

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