Lithuania’s largest dairy processor, Rokiskio Suris, has recently announced its preliminary commercial agreement with the New Zealand based dairy giant, Fonterra amidst their efforts to expand the country’s dairy export. Fonterra is planning to buy a 10% stake in Rokiskio Suris for an investment of USD 11.7 million, cite reliable sources. The investment signals Fonterra’s interest in developing a sustainable European sourcing network by entering strong partnerships with leading firms in the Baltic State country. This strategic move also reflects Fonterra’s commitment toward their business partners, providing a reliable and efficient supply chain with the ingredients sourced in New Zealand.
Having earned the title of the largest dairy processing company in Lithuania, Rokiskio has carved a sufficiently long history since its inception in 1964. Although the mammoth was established in the year 1964, its commencement dates back to 1925. Back then, the dairy industry giant was limited to butter manufacturing. In the year 1964, Rokiskio expanded its business profile by off shooting into curd, sour cream, and cheese products, which is when the company got enlisted under the banner of state-owned enterprises. In 1991, the organization finally got converted into a private firm with the dissolution of the Soviet Union. Since then, foreign investors have been contributing rigorously to the company capital.
Market experts deem Fonterra’s interest in Rokiskio’s business to be absolutely strategic. Rokiskio is presently the chief exporter of cheese in the country, with an annual production capacity of almost 30,000 tons of fermented cheese. Other than cheese, the global dairy supplier also holds a product portfolio encompassing milk powder, whey protein concentrates, curd, and other fresh dairy products. Rokiskio’s present commercial agreement with Fonterra grounds on a long-standing relationship between both the enterprises. Rokiskio has been supplying whey protein products to Fonterra for several years. Becoming one of the chief stakeholders of Rokiskio Suris is certain to lift Fonterra’s status in the dairy ingredients market at a global level.
Establishing a strong export network is one of the major growth strategies adopted by Lithuanian dairy processing giants. Dairy processing market in Lithuania had actually faced a hard blow after Russia has discontinued all food import channels from the European Union since 2014. As a matter of fact, statistics depict that Russia was one of the chief lucrative export markets for Lithuanian dairy products. Since then, the regional players are investing heavily in the region.
The final valuation of the investment is still not confirmed and it is reported to be unveiled only when the provisional agreement runs successfully, which is expected to go onboard from October this year.
Satarupa develops content for Market Size Forecasters. An electrical engineer by qualification, she worked for two years in the electrical domain before switching her professional genre. Following her childhood passion, she opted for a career in writing and now pens down articles pertaining to marke...