Ann: JOINTV: FCG: Fonterra concludes DairiConcepts joint venture

• Release Date: 19/11/15 08:30
• Summary: JOINTV: FCG: Fonterra concludes DairiConcepts joint venture
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					FCG
19/11/2015 08:30
JOINTV
NOT PRICE SENSITIVE
REL: 0830 HRS Fonterra Co-operative Group Limited

JOINTV: FCG: Fonterra concludes DairiConcepts joint venture

19 NOVEMBER 2015

Fonterra concludes DairiConcepts joint venture

Fonterra Co-operative Group Limited today announced it will sell its 50 per
cent interest in DairiConcepts, the Co-operative's US joint venture with
Dairy Farmers of America (DFA).

DFA will purchase Fonterra's 50 per cent interest on 31 December 2015 for a
price of approximately NZD$196 million.(1)

The DairiConcepts partnership was established in 2000 when Fonterra
contributed Key Ingredients its US dairy/cheese flavours business and DFA
contributed a number of cheese and cheese-powder assets.

Fonterra CEO Theo Spierings said that the transaction did not impact the
longstanding relationship with DFA. Fonterra and DFA were both founding
members of the Global Dairy Platform and had a shared interest in promoting
the growth in global dairy consumption and the further development of
co-operative dairy farming. Fonterra had decided to exit the partnership as
it was considered to be a non-core component of its strategy.

"We still value our relationship with DFA, however, as the DairiConcepts
business is almost completely stand-alone operationally, we have agreed that
it would be simpler for one of the partners to buy the other out."

"The US remains a key part of our global multi-hub strategy and this
divestment does not prevent Fonterra from exploring new growth opportunities
for this milk pool."

"A long-term supply agreement we have reached as part of the sale, means our
US milk pool will continue to meet value add customer demand through our NZMP
brand."

-ENDS-

(1) This number is subject to foreign exchange conversion adjustments and
customary closing adjustments.

For further information contact:
Simon Till
Director Capital Markets
Phone: +64 21 777 807
End CA:00273680 For:FCG    Type:JOINTV     Time:2015-11-19 08:30:38