Fonterra does not suffer from the loss of Beingmate

Dairy giant Fonterra does not expect the financial losses of the Chinese Beingmate, with which Fonterra has a joint venture, to affect the production of milk powder in the 'Darnum' factory.

The shares of the Chinese company Beingmate were suspended from the Shenzen stock exchange last week. Until the company comes up with a plan to offset its losses. Last year, Chinese Beingmate showed a loss of $140 million and in the first 6 months of this year, the company has already made a loss of about $70 million. 

Joint venture with Fonterra
The joint venture with dairy concern Fonterra concerns the 'Darnum' factory in Gippsland. The Chinese Beingmate occupies 51% of that joint venture and Fonterra the other 49%.

The dairy manufacturer Fonterra is, however, primarily responsible for production in the factory. In addition, the dairy cooperative also owns an 18% share in the Chinese Beingmate.

A spokesperson for Fonterra says that the company is not worried by the stories from China. "We expect sales of the milk powders to pick up again in the near future."

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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