Aust, NZ dairy groups launch Bonland

SYDNEY, Australia (CNN) -- Australian and New Zealand dairy groups have set up the first major alliance in international dairy marketing with the launch Tuesday of Bonland Dairies.

The company is co-owned by the Melbourne-based dairy manufacturer Bonlac Foods and the New Zealand Dairy Board.

The NZDB is soon to become part of Fonterra Co-operative Group, the New Zealand dairy giant being formed from the merger of the New Zealand Dairy Group and Kiwi Co-operative Dairies.

Fonterra will be New Zealand's biggest company and the ninth largest dairy enterprise in the world when it formally begins operations on October 1.

D'Aquino to chair new company

Bonland Dairies, based in Melbourne, will sell products made by Fonterra, Bonlac and another Australian dairy producer, Bega Co-operative.

Bonland's new chairman is Nuno D'Aquino, deputy chief executive of the large Australian beer and wine company, Fosters Group.

Bonland chief executive Aidan Coleman said Tuesday the new marketing alliance would strengthen the position of dairy farmers in Australia and New Zealand.

Bonland will have annual turnover of about $300 million.