Fonterra Outlines Plan to Extend Leadership in Dairy Nutrition

April 8, 2012 07:27 PM

The world’s leading dairy exporter will focus more tightly on emerging markets and products that meet growing consumer demand for dairy nutrition.

Source: Fonterra news release
The world’s leading dairy exporter, New Zealand’s Fonterra Co-operative Limited, aims to grow volumes and value by focusing more tightly on emerging markets and products that meet growing consumer demand for dairy nutrition.
Fonterra Chief Executive Theo Spierings said the co-op’s new Strategy Refresh program was built on an in-depth look at the co-op's strengths, social and economic trends as well as underlying projections for a marked increase in global demand for milk.
"Strong economic and population growth in emerging markets is driving a situation where global demand for milk is forecast to grow by more than 100 billion litres by 2020, with New Zealand expected to contribute only 5 billion litres of additional supply by that date," Spierings said.
Among its plans, Fonterra will:
  • execute a strong push on the fast-growing emerging markets of China, ASEAN and Latin America where Fonterra already has a strong presence.
  • grow volumes of higher value consumer-branded and out-of-home nutrition.
  • focus more tightly on meeting the advanced nutrition needs of mothers and babies, as well as ageing populations
"We call it the Three Vs -- volume, value and velocity," Spierings said. "With overall demand growing, we need to grow volumes to protect our position as the world’s leading dairy exporter. In addition, nutritional needs, particularly among the young and the elderly are getting more urgent and specific, which is where we have the capability to add significant value."
The full strategic refresh amounts to more than 100 discrete projects -- many already underway -- to focus Fonterra's efforts going forward.

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