Fonterra Maintains Asian Focus

WASHINGTON - May 24/06 - SNS -- New Zealand's Fonterra is continuing to invest in increasing the rapid growth of demand for its dairy products in Asia by promoting dairy foods as a health supplement and adapting products to the Asian palate, according to a recent report from the U.S. agricultural attache for the country.

In China, the government approved Fonterra's application to purchase a 43% share of the Chinese dairy company San Lu in April 2006.

Fonterra views partnering with a local company as an assist in capturing a larger share of China's rapidly growing demand for dairy products. It also believes that gaining access to fresh milk supplies will complement its existing importing and consumer businesses.

A proposed joint venture between Fonterra and Campina, a Dutch dairy company, was announced in March 2006. The joint venture will focus on improving the pharmaceutical lactose specialty of both companies.

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