Fonterra and India's Future Consumer have agreed to wind down their 50/50 joint venture. 

The venture - Fonterra Future Dairy - was established in 2018 and has 22 employees. 

"The last few years have been challenging for the joint venture with Covid-19 causing significant disruption to the Indian market," Fonterra said in a statement. 

Despite this, Fonterra said the joint venture had delivered some important initiatives, including the launch of the Dreamery brand - a range of consumer products made using Indian milk - and distribution of Fonterra's Anchor Food Professionals products for the foodservice sector. 

The co-op entered the joint venture as a capital-light way to test the Indian market, which has a large dairy consuming population but restrictive trade access for New Zealand dairy. 

"We will continue to have a presence in India through Anchor Food Professionals and our Ingredients business, and will explore opportunities to grow access for our New Zealand milk as they come up," Fonterra said. 

Future Consumer is a leading fast-moving consumer goods (FMCG) company in India.