UPDATE 1-Nestle and Fonterra scale down Latam partnership
* Nestle acquires joint venture's milk powder factories
* Fonterra buys Nestle's share of Venezuela joint venture
* Joint venture remains in place in Brazil
* Fonterra to receive NZ$96 mln (Adds Fonterra statement, background)
By Silke Koltrowitz
ZURICH, May 27 (Reuters) - Nestle is buying back milk powder factories in Latin America, significantly scaling down a joint venture with Fonterra, the New Zealand dairy group whose reputation was damaged by a food safety scare last year.
Nestle, the world's biggest food group, and Fonterra, the world's biggest dairy group, set up their venture in 2003 to develop, produce and sell a range of dairy products in Latin America, where economic growth has fueled growing demand.
Nestle said on Tuesday the venture had performed well but the time was right "to realign the partnership to better reflect the respective strategies of Nestlé and Fonterra in the region".
Nestle spokesman Chris Hogg said in an email the move had nothing to do with the food safety issues Fonterra had had to deal with in the recent past. Continuación...