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


Fonterra Kicks Off San Lu Joint Venture In China

Fonterra Kicks Off San Lu Joint Venture In China

Fonterra announced today the formal commencement of its joint venture with leading Chinese dairy company Shijiazhuang San Lu Group (San Lu), following the completion of Government approvals and settlement of Fonterra’s 43% stake.

Representatives from both companies were joined by central and local government officials, China dairy industry representatives, and New Zealand Government officials at San Lu’s headquarters in Shijiazhuang, about 320km south of Beijing, to mark the beginning of the joint venture.

Fonterra China Managing Director Bob Major says the joint venture with San Lu represented a significant step in Fonterra’s strategy for growth in the world’s fastest-growing dairy market. “We bring complementary strengths to the joint venture and we are both well-established players in this market – Fonterra as a successful importer for more than 20 years and San Lu, a local manufacturer and leader in branded dairy products in China.”

Mr Major, who managed the establishment of Fonterra’s sales operations in China more than a decade ago [then under New Zealand Dairy Board] says the market outlook was extremely strong, with increasing affluence and modernisation of the industry expected to see the dairy market there double in size by 2010.

“The combination of rising incomes and a growing appetite for dairy is creating huge potential in the China market.”

Mr Major said the joint venture with San Lu reflected Fonterra’s confidence in the future of the dairy industry in China, and also a recognition of the importance of local milk supply and production facilities in meeting the growing consumer demand in China.

“This will give us further opportunities to leverage our expertise across the whole dairy chain in China.”

Mr Major said the joint venture’s first official Board of Directors meeting would be held in July. Three representatives from Fonterra’s management team in China have joined the seven-member joint venture board, and another Fonterra employee has joined San Lu’s senior executive team.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news