August 1, 2005

Fonterra eyes Asian dairy market
 

Fonterra is eyeing Asia, especially China, as its next big marketplace.

New Zealand-based dairy giant has already captured 45 percent of the Asian import market, said Fonterra Ingredients Asia regional managing director Mark Dewdney.

Returns have proved plentiful-the Asian market now contributes 29 percent to the company's NZ$8.1 billion (US$5.54 billion) ingredients revenue last year.

The Asian market place that Fonterra is eyeing covers 11 countries from the Indian subcontinent to South-east Asia, and some 3.2 billion people-half the world's population.

Dewdney also hopes to capture the increasingly urban Chinese population, now much influenced by Western diets. As it is, China's dairy consumption is growing by 10 percent annually, much higher than the global average of 2 percent.

Fonterra, which is moving its Hong Kong office to China, said that partnering with Chinese dairy and food manufacturers is possible, though it is not likely to get its milk source from China.