Fonterra and Future Consumer to scrap joint venture

Fonterra and FMCG company Future Consumer have agreed to wind down their joint dairy business in India after a “challenging few years”.

The 50:50 joint venture, Fonterra Future Dairy, was established back in 2018 and currently employs 22 people. 

The collaboration launched the brand Dreamery, which offers products including cheese, yogurts and dahi, made using Indian milk.

Fonterra entered the joint venture as a “capital light” way to test the Indian dairy market, which has restrictive trade access for New Zealand dairy.

Judith Swales, Asia Pacific CEO, commented: “The last few years have been challenging for the joint venture with Covid-19 causing significant disruption to the Indian market. We will continue to have a presence in India through Anchor Food Professionals and our ingredients business, and will explore opportunities to grow access for our New Zealand milk as they come up.”