WELLINGTON, Aug 27 (Reuters) - Fonterra, the world’s largest dairy exporter, on Wednesday said it would take a stake in Chinese dairy processor Beingmate as it expands its presence in China’s lucrative branded infant formula sector.
The farmer-owned New Zealand dairy co-operative said it would take a stake of up to 20 percent in Beingmate, one of China’s biggest milk processors, and that Beingmate would distribute Fonterra’s Anmum infant formula brand in China.
Fonterra, which controls roughly one-third of global dairy exports, also said it would invest NZ$555 million ($463.31 million) to increase its milk powder processing capacity in New Zealand.
The company reaffirmed its forecast for its farmgate milk price for the 2014/15 season at NZ$6 per kilogram of milk solids, and added that it expected global milk prices to improve later in the year after falling nearly 70 percent since the start of 2014.
1 US dollar = 1.1979 New Zealand dollar Reporting by Naomi Tajitsu; Editing by Michael Perry