Beleaguered Japanese dairy firm Snow Brand Milk Products will set up a milk processing joint venture with a number of partners, including agricultural associations.
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The venture will be established with backing of ¥15bn (US$120.2m) and is expected to generate profits in the fiscal year ended March 2005. Annual revenue is forecast at ¥230bn.
A 40% stake will be held by Zen-noh (the National Federation of Agricultural Cooperative Associations), while Snow Brand will hold 30%. Another cooperative of dairy farmers, the National Federation of Dairy Cooperative Associations (Zenrakuren) will hold a 20% stake, with the remainder to be owned by Norinchukin Bank, a major creditor of Snow Brand Milk.
Milk plants and workers at Snow Brand Milk, the Zen-noh group and the Zenrakuren group will be transferred to the venture.
The structuring of the new company will involve the closure of three plants.
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