Fonterra is well positioned to increase its trade in Iran following the lifting of trade sanctions, it says.
The Ministry of Foreign Affairs and Trade has confirmed it is in the process of updating its regulations and removing the UN sanctions, which it expects to complete next month.
Fonterra managing director of global ingredients Kelvin Wickham said Iran was a valuable trading partner and a key butter market for Fonterra, with sales of $150 million.
With a population of nearly 80 million and long-standing customer relationships in Iran, Fonterra expected continued growth in the market, Mr Wickham said.
"The good thing for Fonterra is we have that established customer base, we have long-standing relationships, we know how to do business there and we have earned respect for staying the course over the years.
"I was there last week visiting a number of our key customers. They are investing for the future, extending their plants, putting new butter repack operations in and extending ice cream plants.
"We are well positioned to grow share with them and also other customers we haven't previously been able to access because of the sanctions."
He said growth beyond butter into milk powders and milk protein products was on the cards.