Fonterra unveils divestment plan
Fonterra is exploring full or partial divestment options for its global Consumer business, as well as its integrated businesses Fonterra Oceania and Fonterra Sri Lanka.
It was officially opened by Prime Minister John Key, Minister of Sustainable Development & Wildlife and MP for the Kurunegala District Gamini Jayawickrama Perera, and Fonterra chairman John Wilson.
The opening was also attended by 300 people from the local community.
The farm is part of the cooperative's Dairy Development programme which supports the growth of sustainable dairy industries in key markets where Fonterra operates.
Sri Lankan dairy farms are typically small-hold, producing around 20 litres of milk per farm per day, with international imports filling the supply gap.
Anchor is the number one milk powder brand in Sri Lanka and Fonterra collects local milk supply to support the growth of its branded business in the Sri Lankan local market, which is supplied mainly from milk powder imported from New Zealand.
Wilson says: "Fonterra and Anchor have a long history in Sri Lanka, and we are committed to supporting the development of the country's dairy industry.
"Our work to strengthen the Sri Lankan dairy industry not only helps local dairy communities, it allows us to support the growth of local dairy consumption and continue building our presence in this key market."
The farm will focus on helping Sri Lankan farmers improve milk quality and run their farming businesses more efficiently and profitably.
The demonstration and training farm will train around 2500 small-holder, subsistence farmers every year, sharing the cooperative's world-class dairy farming knowledge through farmer visits, field days, short course training and apprenticeship programmes.
Managing director Fonterra Brands Sri Lanka Sunil Sethi says: "We recognise that different countries and climates require tailored approaches to deliver the best results for the local dairy industry.
"With our generations of dairy expertise, we believe we're well placed to help Sri Lankan farmers develop the best, most efficient system for the local climate and environment," says Sethi.
As part of the Dairy Development programme, four New Zealand-based Fonterra farmers will also travel to Sri Lanka between May and July 2016. Each will spend a month at the farm to provide hands-on training and advice.
