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

Chilled milk partnership

Last month marked one year since the launch of an innovative collaboration known as the PAUS Programme (Pay- As-You-Save), which has made it easier for Fonterra farmers to access next generation milk chilling technology.

Featured

Temptation Valley makes a splash

Later this month, Ardgour Valley Orchards apricots will burst onto the world stage and domestic supermarket shelves under the Temptation Valley brand.

PETA wants web cams in shearing sheds

Animal rights protest group PETA is calling for Agriculture Minister Todd McClay to introduce legislation which would make it mandatory to have live-streaming web cameras in all New Zealand shearing shed.

'End red tape'

ACT MP and farmer Mark Cameron is calling on Parliament to thank farmers by reinstating provisions within the Resource Management Act that prevent regional councils from factoring climate change into their planning.

Mixed results on GDT

The first Global Dairy Trade (GDT) auction drew mixed results, with drop in powder prices and lift in butter and cheeses.

'Give hunters a say on conservation' - ACT

ACT Party conservation spokesperson Cameron Luxton is calling for legislation that would ensure hunters and fishers have representation on the Conservation Authority.

National

Farm Source turns 10!

Hundreds of Fonterra farmers visited their local Farm Source store on November 29 to help celebrate the rural service trader's…

Machinery & Products

A JAC for all trades

While the New Zealand ute market is dominated by three main players, “disruptors” are never too far away.

Pushing the boundaries

Can-Am is pushing the boundaries of performance with its Outlander line-up of all-terrain vehicles (ATVs) with the launch of the…

» Latest Print Issues Online

Milking It

Milking fish

OPINION: It could be cod on your cornflakes and sardines in your smoothie if food innovators in Indonesia have their…

Seaweed the hero?

OPINION: A new study, published recently in Proceedings of the National Academy of Sciences, adds to some existing evidence about…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter