Thursday, 07 November 2019 17:39

India partnership new way doing things — Fonterra

Written by  Sudesh Kissun

Fonterra says its new partnership in India is an example of how the co-op is doing things differently.

The launch of Fonterra’s food service business with Indian partner Future Group is described as “a capital light partnership”.

Speaking at Fonterra’s annual meeting in Invercargill today, chief executive Miles Hurrell said the venture combines the co-op’s dairy knowledge and know-how, with Future’s Group’s access to market, established customer base, and strong marketing and distribution networks. 

“Combine these two skill sets together and you get more than the sum of its parts.”

 Through this partnership Fonterra will be exporting its Anchor Food Professionals products from New Zealand to India, where demand for dairy is expected to grow at seven times the rate of China over the next decade. 

“And the reason I raise this as an example is because I believe it highlights the change in our thinking,” Hurrell told about 200 shareholders at the meeting.

“In the past, we thought we needed to have physical assets on the ground in order to succeed. “We also had a wall of milk coming at us – which is not the case today.

“Now, under our new strategy, we are looking to leverage our dairy know-how through partnerships, which will allow us to exploit our intellectual property and enter markets that we might not otherwise have had access to, and to do so in a capital light way.

Hurrell says this is something Fonterra is looking to do more of under its new strategy.

More like this

Fonterra R&D: Innovation needs more than just PhDs

Common sense and good human judgement are still a key requirement for the super highly qualified staff working at one of New Zealand's largest and most important research facilities - Fonterra's R&D Centre at Palmerston North.

Misguided campaign

OPINION: Last week, Greenpeace lit up Fonterra's Auckland headquarters with 'messages from the common people' - that the sector is polluting the environment.

Featured

Big return on a small investment

Managing director of Woolover Ltd, David Brown, has put a lot of effort into verifying what seems intuitive, that keeping newborn stock's core temperature stable pays dividends by helping them realise their full genetic potential.

Editorial: Sensible move

OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.

National

Machinery & Products

» Latest Print Issues Online

Milking It

Cuddling cows

OPINION: Years of floods and low food prices have driven a dairy farm in England's northeast to stop milking its…

Bikinis in cowshed

OPINION: An animal activist organisation is calling for an investigation into the use of dairy cows in sexuallly explicit content…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter