Tuesday, 08 May 2018 11:55

Fonterra's double-digit growth in China

Written by 
Fonterra Greater China president, Christina Zhu. Fonterra Greater China president, Christina Zhu.

Fonterra's business in China has blossomed in recent years.

The co-op is moving into the next phase of its integrated strategy in China by converting more raw milk from its three farming hubs into higher value products.

Fonterra Greater China president Christina Zhu says for a long time the co-op was just an exporter with a small team based over there.

“It was just an agency model for NZ exports,” she says.

Today, Fonterra has about 1700 employees in China; 1100 people work in the 13 dairy farms.

About 500 staff form a core group looking after the co-op’s ingredients, food service and consumer businesses, working primarily in sales, marketing and distribution and supply.

Zhu joined Fonterra China seven years ago as vice-president of the ingredients business; she recalls working with around 20 staff.

“We didn’t have a marketing function, there was no supply chain or technical function either; we had a handful of junior sales staff.”

Today, Anchor UHT milk is sold in 13,000 stores nationwide. The Anchor brand fetches a higher price than most other brands and its growth is in double digits.

More like this

Featured

Langfords crowned Share Farmers of the Year

As the New Zealand Dairy Industry Awards night unfolded, it became evident that Waikato’s Thomas and Fiona Langford were the frontrunners for the biggest prize of the night – the 2025 Share Farmers of the Year award.

ANZCO Foods' net profit plunges

Meat processor ANZCO Foods’ net profit has plunged on the back of lower market returns which squeezed margins and impacted business performance.

Editorial: Forest for the trees?

OPINION: Most people will be aware of the Government's plans to boost coal, oil and gas production to meet energy requirements.

National

Machinery & Products

Gongs for best field days site

Among the regular exhibitors at last month’s South Island Agricultural Field Days, the one that arguably takes the most intensive…

» Latest Print Issues Online

Milking It

Less hot air

OPINION: Farmers won't get any credit for this from the daily media, so Milking It is giving the bouquets where…

Dollars go offshore

OPINION: The Advertising Standards Authority’s 2024 report revealed that not only is social media rotting our brains, it is also…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter