Malaysia re­mains Fon­terra’s key growth driver in Asean

Mar­ket presents op­por­tu­nity for in­creased dairy con­sump­tion, says chief op­er­at­ing of­fi­cer

New Straits Times - - Business - FARAH ADILLA SHAH ALAM bt@me­di­

MALAYSIA con­tin­ues to be an im­por­tant mar­ket glob­ally for Fon­terra Co-op­er­a­tive Group Ltd as it pur­sues to de­velop more high-value prod­ucts to serve the coun­try’s in­creas­ing ap­petite for good qual­ity dairy prod­ucts.

Its global con­sumer and food ser­vice chief op­er­at­ing of­fi­cer Lukas Par­avicini said there is a pos­i­tive op­por­tu­nity for in­creased dairy con­sump­tion in the Malaysia mar­ket.

“Based on per capita dairy con­sump­tion rate here, there is still a lot of room for growth.

“In Malaysia, our brands such as An­lene, An­mum (Ma­ter­nal, Lacta and Es­sen­tial), Fern­leaf, Cal­ciyum and An­chor are very well-recog­nised in the mar­ket. Our busi­ness is sig­nif­i­cant here and the op­por­tu­nity is very big.

“We be­lieve that Malaysia will re­main the key driver for our growth ex­pan­sion in the Asean mar­ket, as ev­i­dent by the in­vest­ments that we con­tinue to make in the coun­try,” Par­avicini told NST Busi­ness in an in­ter­view re­cently.

Com­pared with other de­vel­op­ing coun­tries in which Fon­terra has pres­ence, Malaysians con­sume less dairy per per­son.

Last year, Malaysians con­sumed less than 48 litres of dairy per per­son per year — com­pared with 61 litres for Sin­ga­pore­ans and 272 litres for New Zealan­ders.

In May, Fon­terra Brands Malaysia re­opened its milk pow­der man­u­fac­tur­ing plant, Susumas, fol­low­ing a RM20 mil­lion up­grade, to fur­ther boost its role as a man­u­fac­tur­ing hub in Malaysia and the Asean re­gion.

The up­grade boosts man­u­fac­tur­ing ca­pac­ity and al­lows Fon­terra to blend and pack around 30,000 tonnes of milk pow­der prod­ucts a year, putting the com­pany in a strong po­si­tion to meet the grow­ing de­mand for dairy nu­tri­tion in Malaysia.

Par­avicini also said that there are ris­ing con­sumer trends, such as west­ern­i­sa­tion of di­ets, ur­ban­i­sa­tion and ris­ing in­comes, that are open­ing new ar­eas of growth and op­por­tu­ni­ties for Fon­terra.

He said two such op­por­tu­ni­ties are the rise of out-of-home din­ing and in-home din­ing.

Cur­rently, the out-of-home din­ing spend per capita in emerg­ing mar­kets like Malaysia is only at one-tenth of de­vel­oped mar­kets and this is one op­por­tu­nity Fon­terra is fo­cused on grow­ing.

“While out-of-home din­ing is a grow­ing global trend, we are also see­ing a huge rise in the trend of in-home din­ing in Malaysia.”

Mean­while, Par­avicini said the global con­sumer and food ser­vice busi­ness had tar­geted to shift an ad­di­tional 400 mil­lion liq­uid milk equiv­a­lents into higher re­turn­ing prod­ucts for its fi­nan­cial year ended last month, which is yet to be dis­closed.


Fon­terra Co­Op­er­a­tive Group chief op­er­at­ing of­fi­cer (global con­sumer and food ser­vice) Lukas Par­avicini with some of Fon­terra prod­ucts avail­able in Malaysia.

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