Fonterra

Fonterra is a New Zealand-based multinational dairy cooperative owned by around 10,000 New Zealand dairy farmers, including Federated Farmers of New Zealand and DairyNZ. The company was formed in 2001 through the merger of the New Zealand Dairy Board and Kiwi Cooperative Dairies, with the support of the New Zealand government and Ministry for Primary Industries (New Zealand). Fonterra operates in over 100 countries, including Australia, China, United States, and Europe, and has partnerships with companies like Nestle, Danone, and Archer Daniels Midland. The company's global presence is also influenced by international organizations such as the World Trade Organization and the Food and Agriculture Organization of the United Nations.

Introduction

Fonterra is one of the largest dairy companies in the world, with a significant presence in the global dairy market, competing with companies like Dairy Farmers of America, Arla Foods, and FrieslandCampina. The company's operations are supported by research institutions like the University of Auckland, Massey University, and AgResearch, which provide expertise in areas like dairy science and agricultural engineering. Fonterra's commitment to sustainability is also aligned with the goals of organizations like the United Nations Environment Programme and the World Wildlife Fund. The company's supply chain is managed through a network of New Zealand-based and international logistics providers, including Mainfreight, Toll Group, and DB Schenker.

History

The history of Fonterra dates back to the early 20th century, when the New Zealand Dairy Board was established to promote and regulate the dairy industry in New Zealand. The board played a crucial role in the development of the industry, working closely with organizations like the New Zealand Farmers Union and the Dairy Section of the New Zealand Department of Agriculture. In the 1990s, the New Zealand government introduced reforms to deregulate the dairy industry, leading to the formation of Kiwi Cooperative Dairies and the eventual merger with the New Zealand Dairy Board to create Fonterra in 2001. This process was influenced by international trade agreements like the General Agreement on Tariffs and Trade and the Australia-New Zealand Closer Economic Relations Trade Agreement.

Operations

Fonterra's operations are divided into several business units, including Fonterra Brands, Fonterra Nutrition, and Fonterra Farm Source. The company has a significant presence in Asia, with operations in countries like China, Japan, and South Korea, and partnerships with companies like China Mengniu Dairy, Yili Group, and Meiji Holdings. Fonterra also has a strong presence in Latin America, with operations in countries like Brazil, Argentina, and Chile, and partnerships with companies like Nestle Brazil and Danone Argentina. The company's global operations are supported by a network of research and development centers, including the Fonterra Research and Development Centre in Palmerston North and the Fonterra Innovation Centre in Auckland.

Products

Fonterra produces a wide range of dairy products, including milk, cheese, butter, and infant formula. The company's brands include Anmum, Anlene, and Mainland Cheese, which are sold in countries like Australia, China, and United States. Fonterra also supplies dairy ingredients to companies like Nestle, Danone, and Unilever, which use them to manufacture products like ice cream, yogurt, and baked goods. The company's products are certified by organizations like the New Zealand Ministry for Primary Industries and the European Food Safety Authority.

Controversies

Fonterra has been involved in several controversies over the years, including a 2013 recall of infant formula due to concerns over botulism contamination, which affected companies like Nutricia and Karicare. The company has also faced criticism over its environmental impact, particularly with regards to water pollution and greenhouse gas emissions, which are regulated by organizations like the New Zealand Environmental Protection Authority and the Intergovernmental Panel on Climate Change. Fonterra has also been involved in disputes with Maori iwi over the use of Maori language and cultural symbols in its branding, which are protected by laws like the Maori Language Act 1987 and the Treaty of Waitangi.

Financial Performance

Fonterra's financial performance has been strong in recent years, with the company reporting revenues of over NZ$20 billion in 2020. The company's profitability has been driven by its dairy ingredients business, which supplies products to companies like Nestle, Danone, and Archer Daniels Midland. Fonterra has also invested in several joint ventures and partnerships with companies like Beingmate, The a2 Milk Company, and Royal FrieslandCampina, which have helped to drive growth and expansion into new markets. The company's financial performance is also influenced by global economic trends, including the Global Financial Crisis and the COVID-19 pandemic, which are monitored by organizations like the International Monetary Fund and the World Bank. Category:Dairy companies