Partnership between Faffa Foods of Ethiopia and New Zealand dairy giant Frontera will introduce processing and packing the latter’s Anchor brand of powdered milk in Ethiopia starting in September 2015.
Anchor, the new brand will also fully replace the Abay brand, which Faffa had been packing using ingredients supplied by Fonterra. The two entered into partnership forming New Zealand Milk Products Ethiopia with a 10 million dollar capital investment, 30pc equity owned by Faffa Foods Complex S.C. and 70pc by Fonterra.
The new company will have an optimal capacity of producing 6000tn of milk a year by 2018, which will then be covering 45pc of the total national demand. The new company will employ 120 people as well as 10 production and 15 sales experts, who will be coming from Sri Lanka to train the employees for one year. For the next five years the company has also allocated 50 million dollars for expansion projects.
Source: Addis Fortune