Fonterra's double-digit growth in China

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.