FFI sees great potential for growth

The Jakarta Post, Jakarta

Rolling out a fresh line of quality products bearing its holding company's new name, top milk producer PT Frisian Flag Indonesia (FFI) is all set to further increase its share in the country's growing market for dairy products.

FFI president James Gray told The Jakarta Post recently that the firm still viewed Indonesia as a prospective market for its products, considering the country's still low -- yet growing -- milk consumption level.

"Indonesia's annual per capita consumption of milk is currently 7 liters, far lower than Malaysia's, which has reached the mid-40s, and even Thailand's, already in the mid-20s," he said. "But as more people realize the nutritious benefits of milk, consumption will rise, and we hope we can capture this growing market."

FFI is Indonesia's largest milk producer, according to a survey by AC Nielsen, operating since 1969 two factories in Pasar Rebo and Ciracas, East Jakarta, and employing some 1,500 workers. Its distribution chain covers 300,000 of the country's three million retail outlets.

Meanwhile, to capture the market's demand for low-priced milk, Gray said that FFI will continue offering its products in sachet sizes as well, priced at under Rp 1,000 (some 10 U.S. cents).

Queen Beatrix of the Netherlands recently awarded the royal designation to FFI's parent company, Friesland Coberco Dairy Foods, altering its name Royal Friesland Foods as a recognition to the company's continuous efforts in providing the best quality products.

For FFI's part, Gray mentioned that it too has continued improving the quality of its products, having invested heavily over the past three years to improve its two existing factories.

In cooperation with the Dutch government, FFI has also provided training to more than 1,000 local dairy farmers in Bandung.

"We may also look into marketing fresh milk products upon improving the needed distribution infrastructure, particularly in its refrigeration," Gray said.