Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Fonterra gets green light for China JV

6 April 2006

Fonterra gets green light for China JV

The Chinese government has given its blessing to a deal which will see Fonterra take a 43 percent stake in Chinese dairy company San Lu.

Regulatory approval for the joint venture was announced today during the visit of Chinese Premier Wen Jiabao, who is in Wellington to meet with Prime Minister Helen Clark and other cabinet members.

Fonterra CEO Andrew Ferrier said he was delighted the deal had been given permission to proceed, and the company could now move to finalise the details around its planned investment.

As well as being a long-standing customer of Fonterra, San Lu has an excellent record of growth, an established sales and distribution network reaching more than 600 cities in China, and some of that country’s most modern milk processing facilities, Mr Ferrier said.

“Developing a closer working relationship with San Lu is the logical next step for Fonterra’s business in China. It complements our existing importing and consumer businesses there by partnering us with a successful local company that has access to local fresh milk supplies.”

Mr Ferrier said China’s recent economic growth and expanding middle class offered huge opportunities for Fonterra.

“Dairy consumption has increased considerably in recent years, but it is still well below the average for the Asian region. New Zealand has been a successful exporter of dairy ingredients to China for decades, but as local production increases to meet the rapidly growing local demand, becoming part of the local industry will give Fonterra further opportunities to employ our expertise in all areas of the business from milk collection to consumer goods.”

Mr Ferrier said a free-trade deal between New Zealand and China would bring further benefits to the dairy industries in both countries, and Fonterra strongly supported the government’s efforts to bring this about.


© Scoop Media

Business Headlines | Sci-Tech Headlines


57 Million Users' Data: Uber Breach "Utterly Preventatable"

Cybersecurity leader Centrify says the Uber data breach of 57 million customer and driver records - which the ride-hailing company hid for more than a year - was “utterly preventable”. More>>

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>


Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>


Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>


CO2 And Water: Fonterra (And Dairy NZ)'s Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>