Fonterra Expands into Precision Fermentation with UAE Facility Investment

Fonterra, a leading dairy cooperative fr om New Zealand, has announced a strategic investment in precision fermentation by supporting a new facility in the United Arab Emirates. This facility, with a capacity of 4 million litres, is part of a partnership with Netherlands-based start-up Vivici, The EVERY Company, and the Abu Dhabi Investment Office. It is designed to produce high-purity, animal-free proteins that comply with Halal standards.

This investment comes at a crucial time as Fonterra concurrently divests its consumer brands business to Lactalis for NZ $3.8 billion. The sale underscores Fonterra's focus on its core business-to-business milk ingredients while securing its future in the alternative protein market through this new venture.

The UAE facility aims to cater to the Middle East's growing demand for sustainable proteins, especially those meeting Halal requirements. This move is part of a broader strategy by Fonterra to diversify its protein sources, reducing reliance on traditional dairy herd economics and embracing next-generation technologies.

Fonterra’s dual approach reflects a broader shift in the global protein market, wh ere efficiency and consumer preferences are driving the growth of alternative proteins. By integrating bioreactor technology, Fonterra aims to redefine the concept of dairy ingredients in a sustainable manner.