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

No easy ride for struggling sheep farmers

Stubbornly high farm input costs, a slow Chinese recovery and a flood of Australian lamb onto the global market are the main factors contributing to the tough times being faced by NZ's sheep farmers.

Fonterra posts solid results

Fonterra has delivered a solid half-year result, thanks to higher margins and sales volumes across the co-op's diversified product and category mix.

Featured

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

Editorial: Passage to India

OPINION: Even before the National-led coalition came into power, India was very much at the fore of its trade agenda.

National

Govt urged to reduce ETS units

The Climate Change Commission wants the new Government to reduce NZ Emissions Trading Scheme (ETS) auction volumes as son as…

Dairy sheep, goat woes mount

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand…

Machinery & Products

All-terrain fert spreading mode

Effluent specialists the Samson Group have developed a new double unloading system to help optimise uphill and downhill organic fertiliser…

Can-Am showcases range

Based on industry data collected by the Motor Industry Association, Can-Am is the number one side-by-side manufacturer in New Zealand.

» Latest Print Issues Online

Milking It

Papal visit

OPINION: European farmers are going to extreme lengths to have their message heard.

Thai egg tarts

OPINION: The hustle and bustle of one of Bangkok's most popular fast food outlets may feel a world away from…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter