NEW Zealand dairy giant Fonterra will invest in a blending and packing plant in Indonesia.
It said the move would support the growing demand for dairy in Indonesia as well as the local expansion of Fonterra's consumer brands Anlene, Anmum and Anchor Boneeto throughout the country.
Fonterra chief executive Theo Spierings made the announcement last week as part of the New Zealand Prime Minister-led business mission in Indonesia.
Mr Spierings said Asia was leading the world in dairy demand growth and Indonesia was a big part of this demand.
"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 about 50 per cent over the next eight years," he said. "We want to increase our packing and blending capabilities on the ground to support the long-term growth of our business."
Fonterra packs and blends its consumer brands Anlene, Anmum and Anchor Boneeto in New Zealand or through co-packers in Indonesia or elsewhere in Asia, before distributing to 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," Mr Spierings said.
The relationship between the New Zealand dairy industry and Indonesia dates back to the 1970s when bulk ingredients were first sold to Indonesian food and beverage manufacturers.