Fonterra is to exit an investment in India, saying it no longer fits the company's strategic priorities.
The dairy group invested $US19.8 million in a joint venture in 2001, has since written the value down to a nominal amount.
it will pass its stake to Britannia New Zealand Foods.
Fonterra says domestic milk supply in India is fragmented and developing an efficient milk supply chain there would require significant development and investment.
However, Fonterra will continue to export dairy ingredients to India.