Fonterra agrees to JV on pilot farm in India

Nov. 12 (BusinessDesk) – Fonterra Cooperative Group, the world’s biggest dairy exporter, is looking at opportunities in India, the world’s second-most populous nation, and has agreed to conduct a feasibility study for a pilot farm.

Chief executive Andrew Ferrier signed a memorandum of understanding with Indian Farmers Fertiliser Cooperative joint managing director Rakesh Kapur and Global Dairy Health director Paresh Chaudhry to look at setting up a pilot dairy farm with a herd size of about 3,000 to 5,000 cows.

“India is a vibrant and growing market and we are excited by the potential opportunities,” Ferris said in a statement. Any pilot would follow the example of Fonterra’s Chinese experience, he said.

Last month Fonterra entered into an agreement to buy a long-term lease for its second farm in China, doubling its production of fresh milk in the world’s most populous nation and second-biggest economy.

Fonterra stepped back from its investment in China when its earlier Chinese partner, San-lu, was caught up in melamine scandal in 2008 that left several infants dead.

IFFC is the world’s biggest fertiliser manufacturer and GDH is an organisation set up to develop a global franchise of large-scale integrated dairy farms to improve the quality of milk in Asia and Africa.

(BusinessDesk)