Affco, which has operated in New Zealand's meat sector since 1904, announced Monday it had formed a wholly owned subsidiary called Dairy Trust in order to enter the global dairy arena.

The news could signal the emergence of a new competitor for some of the world's largest dairy firms, and especially Fonterra, the New Zealand dairy co-operative that has long held a monopoly in the country's industry.

"New Zealand dairy products enjoy a first class reputation globally for quality and price competitiveness and the Affco board regard it as an attractive sector for investment," said Affco chairman Sam Lewis.

Affco already has an established international network, processing and exporting around 150,000 tonnes of meat to 74 different countries last year.

Source: Dairy Reporter