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

Why 'Fork to Farm' Beats Farm to Fork, Expert Says

In the past, much has been made of the concept of farm to fork, but an Australian expert in food science and marketing with experience in the dairy industry, Dr Angeline Achariya, says the reverse of this slogan is critical to win modern day consumers.

Featured

Carrfields Marks 50 Years as Rural Health Programme Grows

Celebrating 50 years in the rural landscape of Central Canterbury and beyond, Ashburton-based Carrfields, has been the exemplar for all aspects of modern agriculture via its extensive range of services including supply, growing, agronomic advice and marketing.

Taupiri Farmers Chase Ownership After Awards Success

For Taupiri dairy farmers Logan and Sian Dawson, their involvement in the NZ Dairy Industry Awards has been a key catalyst in the growth of their business - the experience helping shape how they approach the farm ownership pathway they are pursuing today.

Ballance Urges Farmers to Plan Ahead for El Niño

With forecasters advising El Niño conditions will develop through winter and strengthen into spring and summer, Ballance Agri-Nutrients is encouraging farmers and growers to think ahead about nutrient planning and be prepared to work around challenging weather conditions.

National

Machinery & Products

Suzuki Launches Jimny Horizon

Suzuki New Zealand has announced the arrival of the latest version of its Jimny SUV, the Horizon special edition, a…

» Latest Print Issues Online

Milking It

Domestic Focus

OPINION: After hogging the media limelight for telling a NZ Chinese MP to "go back home", Winston Peters has decided…

A No-Brainer

OPINION: With fuel prices soaring, one would have expected most farmers to be reclaiming excise duty on petrol.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter