SPC Secures Fonterra Deal Amid Major Dairy Industry Shifts
SPC Global, the renowned Australian fruit and beverage processor, has secured a significant manufacturing agreement with dairy giant Fonterra, marking a strategic expansion into the international dairy processing sector. The partnership, revealed in SPC’s annual financial report alongside a robust $30 million EBITDA profit announcement, positions the company as a key player in Australia’s evolving dairy landscape.
Under this groundbreaking arrangement, Nature One—SPC Global’s specialized dairy division—will manufacture Fonterra-branded products exclusively for overseas markets at its Carrum Downs facility. This collaboration comes at a pivotal moment as Fonterra has recently completed the sale of its Australian assets to French dairy powerhouse Lactalis, reshaping the competitive dynamics of the regional dairy industry.
SPC managing director Robert Iervasi has confidently addressed potential concerns about the ownership transition, emphasizing his company’s strong working relationships with both Fonterra and Lactalis. Iervasi assured stakeholders that the change in Fonterra’s Australian ownership structure will have no adverse impact on the manufacturing agreement, demonstrating the stability and long-term viability of this strategic partnership.
The dairy processing deal represents part of SPC Global’s broader international expansion strategy, building on earlier successes in Asian markets. Nature One Dairy has already secured multi-million dollar distribution agreements for the Chinese market, exporting Australian-made milk powder products to companies operating in Hong Kong and Macau’s special administrative regions.
This diversification into dairy manufacturing complements SPC’s core operations, with the company’s primary fruit processing facilities remaining anchored in Shepparton, northern Victoria. The Carrum Downs factory now produces a comprehensive range of infant milk formula and specialized powder products targeting various age groups and nutritional needs, positioning SPC as a versatile player in both traditional food processing and premium dairy manufacturing.
