Fonterra aims to provide a more nutrient-rich product than people in developing countries have available today. Photo / AP
Fonterra is making a push to make dairy affordable and accessible for low-income populations in developing regions in the Middle East, Africa, South Asia, and South America - markets that collectively represent more than $1.3 trillion in spending power.
Kelvin Wickham, chief operating officer of Fonterra's giant NZMP ingredients business,
said Fonterra had previously sold commodity products in bulk in these markets but now wants to focus on the premium end of the market by developing and selling higher-value ingredients with added benefits.
"If you look at your GDP stats chart at the income per capita gets above $5000 basis generally you start to see the dairy purchases pick up. Generally that's what the trend is.
"But there are all these people sitting there in this bracket below $10, particularly $4-$10 dollars a day - or even less around US$1 a day in income who would aspire to dairy but can't afford that, so we need to provide an offering that gets them into dairy earlier."
Wickham says there is an opportunity for Fonterra to provide a much better nutrient-rich product than people in developing countries have available today.
