The world’s largest dairy exporter Fonterra plans to expand market in China – Fonterra, Dairy – Food Industry

For the world’s largest dairy exporter Fonterra (Fonterra), its ambitions in China’s development has not happened in China damaged.

2008, China broke out Milk powder Contaminated by chemicals scandal, milk prices fell sharply, this New Zealand co-operatives into the abyss so. Contaminated milk killed at least six people dead and 30 million infants ill.

Fonterra has a 43% stake in the subsidiary in China Sanlu At the center of the scandal, and, although this group had links New Zealand New Zealand Government, information selling adulterated Sanlu Melamine The behavior of milk, but it is widely accused of slow action.

Addition to reputation damage, also due to the Sanlu Fonterra’s investment in bathing suffered financial loss of 200 million New Zealand dollars.

But now, Fonterra is again trying to expand in China, as the world’s largest Dairy products Market is gradually out of the consumer confidence crisis. Fonterra chief executive Andrew

Ferrier (AndrewFerrier) to the United Kingdom ” Financial Times “said:” China has greatly increased purchases of imported products, so New Zealand products sold very well. But we are also operating in China dairy market, and we intend to build more dairy there. “

Fonterra not only for the New Zealand economy is very important for the global dairy market, too. It’s a total of 10,500 farmer cooperatives, 1.6 million employees, accounting for about New Zealand’s gross domestic product (GDP) of 7%.

New Zealand exports 30% of the output from Fonterra which will account for about one quarter. The year Sell The amount could reach 16 billion New Zealand dollars (about 11.24 billion U.S. dollars).

Same time, the cooperatives also account for nearly 40% of global dairy trade share. The figure reflects the fact that: Although the New Zealand accounts for only 2% of the global dairy market, but 95% of the products are for export, export to 140 countries.

Ferrier said the worst period of the year 2008 has ended, the prospects have been better. For example, he pointed out that the industry benchmark?? Whole milk prices have from the February 2009 low of 1,850 U.S. dollars per ton increased gradually stabilized at around 3,300 U.S. dollars a ton.

The company is an international Foods The main supplier of natural dairy products, its profits depend on current milk prices. It is also in the Asia-Pacific, Africa, Middle East and Latin America, operating margins and higher consumer dairy brand business.

In Europe and North America, the constant lack of natural in this business a competitive advantage. “The market is very mature. But we can look forward to Asia and the Middle East grow significantly,” Ferrier said.

“In China, very few of our branded business, but we hope to expand this business; in fifth in the world population in Indonesia, we are a medium-sized competitors.”

Addition to the security of its own good (Anchor) and other dairy brands, it is the world’s major food companies many suppliers or joint venture partners, including Nestle (Nestlé), Kraft (Kraft) and Danone (Danone).

“We follow our customers into the market, we will be New Zealand’s milk and their products are linked together,” Ferrier said. He also added that since 2006, the Consumer business increased profits every year.

For domestic competitors, he did not seem nervous, including natural dairy (New Zealand) Holdings Limited