Fonterra is investing in a blending and packing plant in Indonesia to help support the country's increasing demand for dairy products, forecast to grow by about 50% in the next eight years.
The dairy co-operative's chief executive, Theo Spierings made the announcement as part of the business mission led by Prime Minister John Key in Indonesia this week.
It was part of Fonterra's "group strategy refresh", outlined last month, which aimed to grow volumes and value by focusing more tightly on emerging markets, and products that met growing consumer demand for dairy nutrition.
That amounted to more than 100 projects, many already started, including a strong push on the fast-growing markets of China, Southeast Asia and Latin America, where Fonterra already has a strong presence.
With such rapid growth forecast in Indonesia, Fonterra wanted to increase its packing and blending capabilities there to support the growth of its business, Mr Spierings said.
At present, Fonterra packed and blended its consumer brands - Anlene, Anmum and Anchor Boneeto - either in New Zealand or through co-packers in Indonesia or Asia, before distributing to the Indonesia market.
While Fonterra's brands would continue to use New Zealand ingredients, the new plant would support more local secondary processing of the products and help Fonterra respond to market needs swiftly, he said.
Fonterra would work with partners to establish the Indonesia plant, which was expected to be operational within 18 months.
