Dairy Buzz

Fonterra has cut its ties with India and its Indian partner Britannia Industries in line with its reorganisation and prioritisation of key strategic areas. The milk procurement and distribution in India they felt, was too fragmented and would involve a lot more investment than they are prepared to put in right now. They will still supply dairy ingredients to certain key buyers in the sub-continent. However, they are keeping an eye on the market and do not rule out the possibility of re-entering it in the future if it should prove profitable.