Fonterra to buy 10% stake in Lithuanian dairy firm Rokiskio Suris
New Zealand's dairy company Fonterra has invested NZD11.7m ($8.5m) to acquire a 10% stake in Lithuania's dairy processing company Rokiskio suris.
A preliminary investment agreement has been reached by both parties to expand Lithuania's dairy export.
For several years, Rokiskio has been supplying whey protein products to Fonterra, according to www.stuff.co.nz. The investment is expected to help expand Fonterra's export operations and secure high-value whey protein ingredients for Eastern and Western European, Middle Eastern, and North African markets.
Rokiskio suris board chairman Dalius Trumpa was quoted by media sources as saying: "Fonterra is a leading global company, and by becoming a shareholder of Rokiskio suris it lifts our company to the very different, global level."
A Fonterra spokeswoman was quoted by www.stuff.co.nz as saying: "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."