Bellamy's to pay Fonterra A$28M to change supply contract as it struggles to crack China

Sophie Boot
Tue, 13 Jun 2017

By Sophie Boot June 13 (BusinessDesk) - ASX-listed Bellamy's Australia plans to raise A$60.4 million from shareholders and will pay nearly half of that to New Zealand's Fonterra Cooperative Group in order to change their milk supply contract in its quest to comply with Chinese import regulations. The two companies have been in negotiations this year after announcing changes to their take-or-pay organic powder contract. Fonterra and Bellamy’s first entered into a five-year, multi-million dollar deal to manufacture a range of baby nutrition...

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