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Fonterra Ranked Largest Processor of Milk

30 June 2009

NEW ZEALAND - New Zealand’s Fonterra Co-operative Group has been ranked the No.1 milk processor in the world.

Global industry research group, International Farm Comparison Network (IFCN), benchmarked 600 milk processors in over 70 countries and placed Fonterra’s total annual volume of milk processed ahead of Dairy Farmers of America, Nestlé, Dean Foods and FrieslandCampina.

Fonterra CEO, Andrew Ferrier, said the ranking reflected the global reach and scale of the company’s business, with its New Zealand milk supply and manufacturing operations at the core.

“With 80 per cent of our milk supply coming from our 10,500 New Zealand farmer-shareholders and processed into over 2 million tonnes of export product every year, our local operations, which employ about 10,000 of our staff, are the cornerstone of our global business."

Mr Ferrier said around 20 per cent of Fonterra’s milk was sourced globally, with the volume growing as the company extended its dairy ingredients supply partnerships with customers around the world.

“Building strong global partnerships with our customers also relies on our ability to provide year-round security of supply. By broadening our milk supply base - complementing New Zealand supply with supply from other sources - we can meet customer demand and manage risk, while creating more opportunities to add greater value and grow earnings for our farmer-shareholders in New Zealand.”

Mr Ferrier said while the IFCN ranking showed the size and scale of its operations, the Company’s strength lay in its ability to partner with its customers to add value to their businesses.

“We may be processing more milk than anyone else, but at 2.7 per cent we still only account for a fraction of the total world milk market. The way we differentiate ourselves is through achieving the best quality, offering the most innovative dairy solutions and delivering product on time to meet our customers’ changing demands. This is our true strength.”

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