Fonterra starts construction on new milk powder blending and packing plant in Indonesia

Posted by AFN Staff Writers on 31st March 2014
Fonterra has started construction on a new plant in Indonesia

New Zealand-based dairy giant Fonterra has commenced construction on its first blending and packing plant in Indonesia, which it said will support the growth of its consumer brands Anlene, Anmum and Anchor Boneeto.

Located in West Java, the plant is Fonterra’s first manufacturing facility in the country and its largest investment in a new manufacturing facility in the ASEAN region in the last 10 years.

The plant is expected to be operational by March 2015, and Fonterra said it will create at least 150 full-time positions in the Cikarang and wider Bekasi regency communities where it is based.

Once complete, the plant will have the capacity to pack and blend 12,000 tones of advanced and base nutrition milk powder products annually, which is the equivalent to about 87,000 packs of Anlene, Anmum and Anchor Boneeto every day.

Director General of Agro Industry at the Ministry of Industry, Panggah Susanto, joined Fonterra at an event in Jakarta to mark the official start of construction on 27 March 2014.

Plant will help growth in Indonesian dairy business

Fonterra said the Fonterra Brands Manufacturing Indonesia Cikarang Plant will allow Fonterra to meet the ever-growing demand for dairy nutrition in Indonesia.

“Demand for dairy in Indonesia is expected to grow by around 5 per cent each year to 2020, and our investment in this facility will help support growth,” said Pascal De Petrini, Managing Director of Fonterra Asia Pacific, Middle East and Africa (APMEA).

“This new blending and packing facility is the next step for our business in Indonesia, where we already have a strong and established presence,” Mr De Petrini said. “The investment will support the local expansion of Fonterra’s consumer brands, and increase our on-ground capabilities which are critical to the long-term growth of our business,” he said.

The Company said that as well as the financial investment, the plant would bring Fonterra’s dairy manufacturing in design standards, knowledge, expertise and technology from New Zealand to Indonesia. Fonterra said the plant will also provide local staff with training and development opportunities in advanced food safety, quality and operational standards.

“We are investing in building the right infrastructure and developing local capabilities to produce our trusted portfolio of brands and meet the ever-growing demand for dairy in Indonesia,” said Paul Richards, President Director, Fonterra Brands Indonesia.

Fonterra working with Indonesian government to increase dairy consumption

Fonterra said Indonesia had been an important part of New Zealand’s global dairy trade since New Zealand began selling bulk dairy ingredients to Indonesian dairy companies more than 30 years ago. Currently, Indonesians consume  11 litres of milk per capita, which is well below the average consumption of neighbouring countries such as Singapore, where consumption in 51 litres per capita.

“We are firmly committed to working closely with government, industry and community partners to make quality dairy nutrition available to everybody, every day, and this announcement is our next  step in that commitment,” Mr Richards said.

The Company said Fonterra Brands Indonesia was one of the fastest growing companies in Fonterra, and was one of the largest contributors to Fonterra’s Asian business. Fonterra has 194 staff working with distribution and retail partners to distribute its dairy products through more than 60,000 Indonesian outlets.

Australian Food News reported last week that Fonterra had also announced the opening of a “dairy exchange” centre in China, which would allow New Zealand and Chinese dairy workers and researchers to exchange skills, research and information.