Fonterra, a dairy cooperative, has announced the closure of a joint venture in India, claiming that Covid-19 has created severe market disruption.
Future Consumer Limited, the country’s largest consumer retail firm, is a partner in the 50-50 joint venture, which began in 2018. Fonterra introduced the Dreamery brand, which featured yoghurt and milkshakes produced from Indian milk.
Fonterra’s Asia Pacific CEO, Judith Swales, said the joint venture was a low-cost option for the co-op to test the market. According to her, the decision made today would affect 22 employees, all of whom will get proper benefits.
“The joint venture with Covid-19 has had a difficult few years, producing major upheaval in the Indian market.”
Swales remarked. “Through Anchor Food Professionals and our ingredients company, we will continue to have a presence in India, and we will investigate possibilities to expand access to our New Zealand milk as they arise.”
She said that India has a huge dairy-consuming population, but that trade access for New Zealand dairy was restricted.
This was Fonterra’s second foray into the Indian market, following an eight-year cooperation with Bangalore-based Britannia Industries that terminated in 2009.