Fonterra trims board size
Fonterra’s board has been reduced to nine - comprising six farmer-elected and three appointed directors.
Fonterra Future Dairy was launched in 2018 as a 50:50 joint venture between the co-operative and Future Consumer Ltd.
It launched a range of consumer products made from Indian milk and distributed Anchor Food Professionals products for the foodservice sector.
Fonterra chief executive for the Asia Pacific region Judith Swales says the last few years have been challenging for the joint venture with Covid disrupting to the Indian market.
Swales says despite this the joint venture has delivered some important initiatives, including the launch of the Dreamery brand. She says the brand received positive feedback from consumers.
Future Consumer is the fast moving consumer goods (FMCG) arm of the Future Group. According to media reports out of India, the debt-laden company was told by regulators to sell 200 of its 1,700 retail outlets.
Fonterra's exit from the joint venture is unlikely to impact its balance sheet. "The co-op entered the joint venture as a capital-light way to test the Indian market, which has a large dairy consuming population but restrictive trade access for New Zealand dairy," says Swales.
"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."
The 22 people employed by the joint venture will receive appropriate entitlements, says Swales.
