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FrieslandCampina targets UHT producer Indonesia
According to various Indonesian sources, the Indonesian supplier of UHT milk, Ultrajaya (ULTJ), has come under the scrutiny of FrieslandCampina. The latter is reportedly seeking a minority stake.
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FrieslandCampina, as usual, declines to comment on speculation, but the company is pursuing acquisitions in the region. It was recently in contention (along with others) for the acquisition of Fonterra's Australian dairy operations. And in the September issue of the members' magazine "Milk," chairman Sybren Attema also stated that FrieslandCampina will not rest on its laurels following the merger with Milcobel, but will continue to explore other growth opportunities.
Fragmented market
It's difficult to get a clear picture of the Indonesian dairy market and its major players. It's a fragmented market, but a large one. Most milk comes from abroad, with New Zealand supplying almost half of all raw materials, while the US and Australia come in second and third. However, Fonterra isn't the largest player in the consumer products market. It primarily supplies the ingredients.
UHT player
According to market researcher Nielsen, the most important players in the consumer market are: Danone with 21%, FrieslandCampina (Frisian Flag Indonesia) with 18%, Nestle with 16%, Indolacto with 12% and Ultrajaya with 10%.
Ultrajaya Milk Industry & Trading Company (ULTJ or Ultrajaya) is one of those larger Indonesian players, but it doesn't just sell milk. When it comes to milk, Ultrajaya primarily operates in the UHT segment, which is heated, long-life milk.
Result under pressure
In the first half of 2025, the company achieved a dairy turnover of €213 million, resulting in a net profit of €31,4 million. This may not seem like a bad result, but competition is fierce, and the aforementioned result is 8,2% worse than the same period last year in terms of turnover. In terms of profit, it's even 20% worse. The results are showing a sharp downward trend, and this has reportedly led the Prawirawidjaja family to be open to external participation.
Few free shares
It seems logical, then, that such participation would not involve the purchase of the 18,3% free shares, but rather the acquisition of part of the remaining family interest. Discussions on this matter will continue with interested parties in the coming period.