March 25, 2014

Fonterra may build US$35 million milk plant in Indonesia

In order to meet the increasing consumer demand for milk and as part of the company's strategy to expand into rising Asian markets, Fonterra, a New Zealand-based dairy co-operative, is planning to establish a US$35 million milk plant in Indonesia.

To be located in Bekasi, West Java province, the proposed milk plant will have a capacity to process 20,000 tonnes of milk every year. It is expected to become operational in November 2014.

Initially, the company had plans to establish a packaging and blending facility in the country, which is a key importer of New Zealand milk powder.

Fonterra has opened the China-New Zealand Dairy Exchange Centre in Beijing earlier this month to boost the sustainable development of the dairy industry in China and New Zealand.

The centre, which was developed as a joint initiative between Fonterra and China's National Dairy Industry and Technology System, will oversee research on dairy industry policy and technologies by dairy experts from both the countries.