New Zealand's Minister of Trade joined Fonterra, the world's largest dairy processor, and local officials on Sunday to celebrate its recent buyout of the Saudi New Zealand Milk Products (SNZMP) factory in Dammam. At an official inauguration ceremony at the site, Tim Groser, New Zealand Minister of Trade, said the “the GCC holds increasing importance for New Zealand, and our visit to the region aims to extend our existing trade relationships as well as investigate new opportunities for trade and investment in the region. The ceremony represented yet another advance in expanding the reach of New Zealand products and expertise within this prosperous market.” Amr Farghal, managing director of Fonterra Middle East, Africa (MEA) and Commonwealth of Independent States (CIS) said the official ceremony marked the beginning of the next stage for Fonterra's business in Saudi Arabia. “Saudi Arabia is the cornerstone of our business in the GCC. With full ownership of our investment here, we will be able to secure the future manufacturing requirements needed to meet growing demand for high quality, New Zealand dairy in the region.” Worth around SR120 million (NZD45 million), this acquisition is a major step forward for Fonterra's growth strategy in the Kingdom of Saudi Arabia and the wider GCC region. Fonterra previously owned a 49 percent stake in the SNZMP dairy manufacturing factory with former joint-venture partner Saudia Dairy and Foodstuff Company (SADAFCO), which owned the remaining 51 percent stake. The ceremony was also attended by Mark Wilson, Fonterra's managing director of Asia, Africa and Middle East, members of the New Zealand trade delegation, which includes up to 60 New Zealand companies looking at investment opportunities in the region, as well as local government officials. According to New Zealand Trade and Enterprise, the GCC as a whole is an increasingly important contributor to New Zealand's economic prosperity. Trade between New Zealand and the GCC totalled over USD2.1 billion last year - a 40 per cent increase since 2000 - making GCC New Zealand's sixth largest bilateral trading partner.
