BusinessDesk: New blending and packing plant in Indonesia as Fonterra focusses on growing Asian demand for high-protein food

BusinessDesk: New blending and packing plant in Indonesia as Fonterra focusses on growing Asian demand for high-protein food

Fonterra Cooperative Group, the world’s biggest dairy exporter, plans to invest in a new blending and packing plant in Indonesia as it seeks to tap growing Asian demand for high-protein food products.

The plant is expected to be running within 18 months, and will pack and blend New Zealand-sourced ingredients for the Anlene, Anmum and Anchor Boneeto consumer brands to be distributed into the Indonesian market.

Chief executive Theo Spierings announced the plan as part of the Prime Minister John Key-led trade missions to Indonesia, which is the 10th-biggest market for Fonterra and New Zealand’s 10th-largest export destination.

“With such rapid growth forecast in Indonesia, we want to increase our packing and blending capabilities on the ground to support the long-term growth of our business,” Spierings said in a statement.

“While Fonterra’s brands will continue to use New Zealand ingredients, the new plant will support more local secondary processing of the products and help us respond to market needs swiftly,” he said.

The announcement comes a week after the dairy exporter flagged it would spend $100 million to build two more farms in China, when Fonterra said it wants to produce up to one billion litres of milk a year by 2020 across the world’s most populous nation.

Maspiyono Handoyo, president director of Fonterra Brands Indonesia, said the company is looking to work with partners to set up the plant, and is considering its “possible structural options and locations.”

The dairy exporter is seeking to attract external investment to pay for its global aspirations with its controversial Trading Among Farmers project – a scheme that would enable farmers to sell the dividend rights of their shares into a fund, which would then become available for investors to purchase as units in a secondary market.

(BusinessDesk)

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Sounds like instead of third party contract manufacturers but not much detail for an 18mth start date.
 
Fonterra Brands Indonesia is a leading dairy company that employs over 150 permanent staff and over 1,300 outsourced employees. All our products are manufactured with base milk products that are sourced out of Fonterra in New Zealand.
We partner with third party contract manufacturers that meet Fonterra’s strict quality assurance guidelines in blending and packing our products for the Indonesian market.
We also work with a large number of distribution parties to make our products available to over 60,000 outlets countrywide. In addition, we have close working relationships with a number of chilled distributors that serve our foodservice customers in Indonesia.
 
Doing business there can be a challenge
http://www.dfat.gov.au/publications/indonesia/Ind_chp6.pdf
 
 

Sounds a great idea to me, just a little question about Lactose intolerance that perhaps Fonterra could answer
>>>>>
Up to 90 percent of South Asians may be lactose intolerant. Lactose intolerance, which is due to the inability to digest milk sugars, is a common disorder caused by a deficiency of the lactase enzyme in the digestive system. Lactose intolerance is three times more common in South Asians than in other
 
http://www.pamf.org/southasian/risk/concerns/lactose.html

Hi Aj.  Fonterra makes specific lactose reduced products for the Asian market.  They tailor make their products to each market.