Farmers' call
OPINION: Fonterra's $4.22 billion consumer business sale to Lactalis is ruffling a few feathers outside the dairy industry.
It will be the cooperative's first operating office in the country and the first time Fonterra has employed its own India-based staff. These developments follow Fonterra's strategy refresh in March.
Fonterra President Greater China and India Kelvin Wickham says the opening of the Delhi office and Gowan's appointment will allow Fonterra to gain a better understanding of this important dairy market.
"India's dairy industry is growing rapidly. With 20 million more mouths to feed every year and an increasingly affluent population, the demand for high quality dairy nutrition continues to grow at a rapid pace – annual dairy consumption is forecast to reach around 180-200 million tonnes by the end of the decade," he says.
"Today India produces around one sixth of the world's milk and almost all of this is consumed locally. The country has a large, complex dairy industry and, while Fonterra has developed a strong knowledge of the country's dairy environment, it is clear we need to have dedicated leadership on the ground to further strengthen relationships and develop opportunities.
"Gowans has more than 10 years' experience in the dairy industry and a deep understanding of our business. He is very well placed to guide Fonterra in India as we explore opportunities in this fast-growing dairy market," says Wickham.
For the last three years, Gowans has managed Fonterra's ingredient business into India, Pakistan, Bangladesh, Sri Lanka, Nepal, Malaysia and Singapore. He joined the Kiwi Cooperative Dairies as a graduate, moving up the ranks to hold a number of senior sales and product manager roles.
Gowans says Fonterra and New Zealand has a long-established relationship with India.
"The first New Zealand dairy products arrived in India in 1885. We have been supplying dairy ingredients to Indian customers for generations and have strong relationships across the country. Establishing a presence on the ground will allow us to explore further opportunities in the world's fastest growing dairy market.
"We are committed to deepening our knowledge of the local dairy environment and want to work alongside the local industry to build the supply of high quality dairy nutrition to India."
Fonterra's office in Delhi will officially open in 2013.
