Anchor brand in Egypt

Fonterra is launching Anchor products in Eqypt through a deal licensing the brand to the local Arab Dairy.

The company will pay Fonterra a royalty on its sales during the five-year licence period.

Egypt has the highest population in the Middle East - 80 million people, over a third of them under the age of 14 - and consumes 470,000 tonnes of dairy products a year.

But Fonterra also views Egypt as a regional low-cost production centre which can act as a gateway to the Middle East and Africa.