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Under the deal, Land O’ Lakes will distribute cream cheese and UHT (ultra-high-temperature) cooking cream to its food service customers.
Fonterra global director of food service Paul Harvey said the U.S. is the largest and most competitive dairy food service market in the world.
Land O’ Lakes is a farmer-owned business that is more than 100 years old and had sales of $14 billion US last year and profits of $207 mililon.
Harvey said Fonterra hopes to expand the range of products it will market via Land O’ Lakes.