Fonterra invests US$11.7m in Lithuanian dairy company
31 Aug 2017 --- Fonterra, one of the largest world dairy processing companies and the largest exporter in the world of dairy products has announced the purchase of 10 percent equity stake in Lithuanian dairy company Rokiskio Suris for US$11.7 million. Rokiskio is the largest dairy processor in Lithuania and has been supplying Fonterra with whey protein products for several years. It produces more than 30,000 tons of fermented cheese each year.
Its main export is cheese, but it also produces lactose, whey protein concentrate, milk powder, butter, curd cheese and fresh dairy products for the local markets.
A Fonterra spokesperson said the investment would enable the dairy giant to secure high-value whey protein ingredients for Eastern and Western European, Middle Eastern and North African markets.
“This potential investment reflects Fonterra's move to form strong partnerships to develop a sustainable European-sourcing network, providing a reliable and efficient chain of supply and complementing its New Zealand-sourced ingredients,” the spokesperson said in a statement.
The deal is subject to a due diligence review, final legal agreements and closing conditions. The final investment value will be confirmed if the provisional agreement goes ahead, which is expected to be in October.
The Rokiskio company was founded in 1964 and its beginnings go back to 1925 when it was established to manufacture butter. It became a state-owned company in 1964 when it branched out into making cheese, curds and sour cream.
