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FFI sees great potential for growth

| Source: JP

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.

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