Nestlé and New Zealand's Fonterra Cooperative Group Ltd. are implementing the second phase of what they call Dairy Partners Americas (DPA).

Nestlé and New Zealand's Fonterra Cooperative Group Ltd. are implementing the second phase of what they call Dairy Partners Americas (DPA).

Through the creation of individual ventures it will cover Ecuador, Colombia, and Trinidad & Tobago. The alliance partners plan on:

• A joint venture for the manufacture of basic milk powders in Ecuador and Colombia, respectively

• A joint venture for the manufacture, marketing, sales and distribution of dairy chilled and liquid products in Ecuador

• A dairy chilled and liquid joint venture in Trinidad & Tobago.

The DPA Alliance, signed in March 2002, aims to secure cost competitive supply of fresh milk and milk ingredients, to build strong positions in chilled and liquid milk businesses and to realize a wide range of synergies in dairy operations.

The new DPA joint ventures in Ecuador and Colombia will become operational on July 1, and will be incorporated in the existing regional management structure.

The first phase was implemented in January 2003 with the start up of five joint ventures in Brazil, Venezuela and Argentina, creation of a DPA Regional Management organization and the sale of Fonterra's milk powder businesses to Nestlé in Venezuela, various countries of Central America, the Caribbean, Dominican Republic and Peru.