Fonterra plans Indonesian blending and packing plant

New Zealand dairy cooperative Fonterra has announced that it plans to invest in a blending and packing plant in Indonesia in response to the growing demand for dairy products in Indonesia. Fonterra says the investment will support the local expansion of its brands Anlene, Anmum and Anchor Boneeto.

“The New Zealand dairy industry has over a 40-year relationship supplying high-quality dairy products to Indonesia and dairy demand in Indonesia is forecast to grow by around 50% over the next eight years,” said Fonterra CEO Theo Spierings. “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.

“Global dairy demand is set to increase by 100 billion litres over the next eight years and 60% of this growth is expected to come from China, India and Indonesia,” Spierings said. “This investment in our local packing and blending capabilities will help ensure we can keep up with the region’s growing appetite for dairy nutrition.”

Packing and blending of Fonterra’s Anlene, Anmum and Anchor Boneeto is currently carried out in New Zealand before it is distributed in Indonesia.

“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,” Spierings said.

“We are currently talking with prospective partners and looking at possible structural options and locations. We expect to have the new plant operational within 18 months, which will adopt current best practices from across Fonterra and comply with Fonterra’s Standards of Excellence and Quality,” said Maspiyono Handoyo, President Director of Fonterra Brands Indonesia.