Fonterra has started building its first production plant in Indonesia today (26 March), a move the dairy group said will support the development of its Anlene, Anmum and Anchor Boneeto brands.

The IDR357bn (US$31.3m) facility is located in West Java and represents the largest investment Fonterra has made in the ASEAN region in ten years.

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The facility is expected to begin operations in March next year. At full capacity, it will be able to pack and blend 12,000 tonnes of milk powder products annually. This represents around 87,000 packs of Anlene, Anmum and Anchor Boneeto daily.

Speaking at a ground breaking ceremony earlier today, Pascal De Petrini, MD of Fonterra Asia Pacific, Middle East & Africa, said the company expects demand for dairy in Indonesia to grow by 5% a year between now and 2020.

Consumption in the country stands at 11 liters of milk per capita. Fonterra said that is “well below” consumption levels in neighbouring countries. In Singapore, for instance, consumption stands at 51 liters per capita.

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“This new blending and packing facility is the next step for our business in Indonesia, where we already have a strong and established presence. The investment will support the local expansion of Fonterra’s consumer brands, and increase our on-ground capabilities which are critical to the long-term growth of our business,” De Petrini explained.

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