Fonterra has formed a joint venture with Ethiopia’s Faffa Foods to partner in the launch of Fonterra’s first African consumer product – Anchor Fortified Milk Drink, a New Zealand milk powder fortified with over 30 nutrients.

 

The new venture, New Zealand Milk Products Ethiopia, will produce, package, and market the Anchor brand milk across the country beginning this month.

 

“The milk powder is sourced from New Zealand using New Zealand milk,” said Alan Fitzsimmons, managing director of Fonterra Brands Central Asia, Middle East, and Africa. “However, the final product is produced and packaged in Ethiopia.”

 

Fonterra will control a majority 70% stake in the venture, while Faffa Foods, which produces cereal, snacks, and milk powder will control the remaining 30%. Fonterra has said that at this point, it is unknown what the group’s total financial investment in the venture will be.

 

Ethiopia is the second most populous country in Africa with 100 million people, and has the second fastest growing regional economy, but in spite of these facts it is one of the most malnourished countries in the world, signaling to Fonterra the vast nascent potential in the market.

 

Fonterra worked with Ethiopia’s Food and Nutrition Society to design the Anchor brand milk drink to include the specific nutrients missing from the diets of the country’s children.

 

“Malnourishment is an issue and the population needs access to an affordable product that delivers high quality nutrition,” Fitzsimmons says.