US marketing cooperative DairyAmerica and New Zealand-based dairy giant Fonterra have called time on their 13-year old skim milk powder (SMP) export agreement.
Fonterra and DairyAmerica confirmed in a statement yesterday that they will not renew export agreement currently in place when it expires on 1 August. Under the deal, which was first signed in 2001, Fonterra acts as an export agent for DairyAmerica.
DairyAmerica is a federated marketing cooperative made up of Agri-Mark, California Dairies, O-AT-KA Milk Producers and United Dairymen of Arizona. It markets 100% of the milk powder produced by its members.
In a statement, both parties agreed that the time is right for DairyAmerica to go it alone.
“We are increasing the availability of our product to the international market and see this as the right time to chart our own course and sell direct to customers,” said DairyAmerica CEO, Hoyt Huffman. “This would not have been possible without the support of Fonterra over the course of the relationship.”
Tim Deane, director of global sales at Fonterra, added: “We’ve supported them with our well established sales channels and now the timing is right for them to go out on their own.”