Fonterra Cheers NZ-India Trade Wins, But Disappointed by Dairy Exclusion in India FTA

The long-awaited India–New Zealand Free Trade Agreement (FTA) is nearing completion after a decade-long hiatus, promising fresh opportunities across multiple sectors. While New Zealand exporters of fruit, IT services, and skilled professionals are set to benefit, dairy giant Fonterra has expressed mixed feelings about the outcome.

 

Key highlights include India’s willingness to open doors for non-dairy sectors, which Fonterra welcomed as a positive step for New Zealand’s broader trade ambitions. However, the company voiced disappointment that negotiations failed to secure significant new market access for core dairy products. India’s dairy industry, home to nearly 70 million small farmers, remains heavily protected by tariffs ranging from 30–60%, making it one of the toughest markets for foreign dairy exporters to penetrate.

 

Fonterra had hoped the FTA would unlock opportunities to serve India’s 1.4 billion consumers, but the talks underscored the political and social sensitivities surrounding dairy in India. Despite this setback, Fonterra reaffirmed its commitment to exploring alternative pathways, including partnerships and innovation, to eventually gain a foothold in the Indian market.

 

The NZ-India FTA is still seen as a milestone, but for dairy, the wait continues.

 

Sources: Economic Times, The Bullvine, Edairy News