Fonterra’s dairy exports to China set to treble
April 27th, 2009
Fonterra has put the tainted milk affair at its former Sanlu joint venture behind it and is on track to treble its dairy exports to China to about 160,000 tonnes this financial year which at current milk powder prices could be worth up to $630m. Fonterra Chairman Henry van der Heyden has confirmed a huge jump in demand as many Chinese opt for foreign milk powder products because they have lost faith in the local product. The only cloud on the horizon is how long the Chinese sales boom will last although van der Heyden believes it could be for two or three years.
Van der Heyden joined the business delegation accompanying Prime Minister John Key on his first official visit to China. During the week-long visit, he opened Fonterra’s 85% -owned dairy farm at Tangshan, in northern Hebei province, and formally launched the corporate social responsibility programme Fonterra announced last year. The farm will provide a secure source of high-quality milk for top Fonterra brands.
Meanwhile, Fonterra has signed a deal with Sims Trading Company – a subsidiary of Hong Kong company Dah Chong Hong Holdings – to replace Sanlu as the main distributor for the Fonterra consumer brands. Fonterra’s Anmum and Anlene brands will be launched in China in July. Anlene is a range of enriched dairy products to help adults’ bone health; Anmum products increase folate and calcium levels for pregnant and nursing women.
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