THE REPORT OF A FACTORY VISIT TO
THE REPORT OF A F ACTORY VI S I T TOF ONT ERRA BRANDS ,S RIL ANKA
Sachith S. Fernando,Department of Botany,University of Kelaniya,Sri Lanka.
In 2001, New Zealand milk Lanka (Pvt) Ltd changed the name as Fonterra Brands.Fonterra is New Zealand’s largest multinational company with revenue exceeding NZD $17Billion. As a cooperative Fonterra is owned by over 11,000 farmers, it is also the 6th largestdairy company in the world. Fonterra was established in October 2001 through a merger of the two largest New Zealand dairy cooperatives and the New Zealand Dairy Board. Thepurpose of the merger was to create a single company to manage the supply chain for asignificant proportion of the New Zealand dairy industry. The company has an annualturnover of around US$8 billion. Its core business consists of exporting dairy products underthe NZMP brand (95% of its New Zealand production is exported). It also operates a fast-moving consumer goods business for dairy products, Fonterra Brands. There are around30000 farmers in New Zealand who supply milk to Fonterra. Fonterra has a number of subsidiaries and joint-venture companies operating in markets around the world.In 2005 the company purchased a large factory in Dennington, Victoria, Australiafrom Nestlé, after they moved out of the collection of milk from farmers and the manufactureof powdered milk in Australia. Also in 2005 the company made moves towards purchasingAustralian companies Dairy Farmers and National Foods. It also converted its 50 per centstake in Victorian dairy producer Bonlac to full ownership. At this time $1 billion of Fonterra's revenue was from Australian sales, which was 14 % of the dairy products it sellsaround the world.In November 2007 after a lengthy capital review the company's board recommendedto farmers that its assets, liabilities and operations
be split from the co-operative and listed onthe New Zealand Stock Exchange. Under the plan, which had been rumoured for months, theco-operative would retain two-thirds of the company, 15% would be given to farmers (whichthey could sell or retain), and 20% traded freely. Doug Woolerton, a New Zealand First MP,branded the plan "a disaster for farmers and for our economy as a whole", but othercommentators said it would breathe life into the sector and the New Zealand economy as awhole. The announcement started a two-year review. If the board's plans are adopted,Fonterra is expected to be New Zealand's largest listed company. Fonterra have recentlysuggested that they will move their US headquarters from Harrisburg, Pennsylvania toChicago, Illinois adjacent to the Chicago O'Hare International Airport for close proximity to awide range of international flights, proximity to public transportation, their dairy suppliersand clients (Kraft Foods Inc. and General Mills Inc.) in the Midwest.In Sri Lanka, the factory is located at Biyagama and all the processes are carried outin that particular factory.
Fonterra is keen in keeping the quality of milk at the best level. The milk products of Fonterra are accredited with;ISO 9001: 2001HACAAPSQFISO 22000: 2005
What Fonterra does in Sri Lanka?
Fonterra Brands Lanka (Pvt) Ltd. is the major dairy product manufacturer andmarketer in Sri Lanka. In the past it only manufactured milk powder, but today it produces arange of dairy products to the local market, such as yoghurt, liquid milk. Therefore, it has twoplants separately as liquid and powder plants
Products of Fonterra for local market
Anchor full cream milk powderRaththi full cream milk powderAnchor 1+ and Anchor 3+AnleneAnmumAnchor non fatAnchor butter and cheeseNewdale yoghurtRaththi yoghurtAnchor yoghurtAnlene yoghurtNewdale fresh milk UHT milk