Fonterra Plans Overseas Investment as Demand to Boost Prices

Fonterra Cooperative Group Ltd., the world’s largest dairy exporter, plans to boost investment in dairy farms and plants in China and other emerging markets as rising demand pushes milk prices higher in the next decade.

“We need to look outside of New Zealand, we need to look at other milk pools,” Chief Executive Officer Theo Spierings said on a conference call today after the Auckland-based company reported an 18 percent rise in first-half profit. “If we only focus on New Zealand, we’ll lose market share, we’ll lose relevance.”