Fonterra and DairyAmerica have confirmed that they will not renew their export agreement upon the completion of its current term, effective 1 August 2014.
The agreement saw Fonterra acting as DairyAmerica’s Skim Milk Powder export agent.
Both parties are said to agree that the timing is right for DairyAmerica to chart a more independent course directly to customers in export markets.
"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 Hoyt Huffman, DairyAmerica CEO. “This would not have been possible without the support of Fonterra over the course of the relationship."
"From the start DairyAmerica have been open about building their own market access capabilities,” said Fonterra director of global sales, Tim Deane. “We've supported them with our well established sales channels and now the timing is right for them to go out on their own."
Through the intervening period it remains business as usual with both DairyAmerica and Fonterra saying that they are committed to a seamless transition process to ensure the customer experience is not compromised in any way.
