Indian dairy market not a priority for Fonterra

Posted by Editorial on 29th April 2009

Fonterra has announced it will exit its investment in Britannia New Zealand Foods, a joint venture based in India, as it no longer fits the company’s strategic priorities.”We are casting a critical eye over our investments on an ongoing basis to ensure they reflect our key strategic priorities,” Mark Wilson, Fonterra’s Managing Director Asia Middle East, said. “While we are seeing a lot of growth in India, the local milk supply is fragmented and requires significant development and investment in order to deliver an efficient supply chain for high quality fresh milk.”

“Investing in India’s consumer dairy market is not a core priority for Fonterra at this time.”

Mr Wilson added that Fonterra, the world’s largest dairy exporter, would continue to supply dairy ingredients to key customers in the Indian market and would keep an active interest in any future opportunities.