Fonterra, New Zealand’s largest dairy cooperative group, to enter the Chinese market more than twenty years, these two years, Fonterra has been the quality of dairy products will be the first place, shaping the dairy brand in China dairy marketing management brainstorming, in June 2006, Fonterra and Sanlu Group, announced the official joint venture operations. Sanlu Fonterra Group Subscription 43% of the shares subscribed capital 864 million yuan. Chinese dairy companies to buy shares in China’s domestic investment in the establishment of pastures on these practices, New Zealand, said Fonterra only “want to be part of China’s dairy industry.” Then, the face of increasingly sophisticated Chinese dairy market, Fonterra is how it works, then is how to plan it? FIC exhibition by the occasion, HC Network interviewed Fonterra Trade (Shanghai) Co., Ltd. General Manager of Business Development Mr. Guo Xueyan.
Closely linked to the Chinese market to overcome the acclimatized
Danone shares up 11.55% overweight bright, British RichKeen unification with Taiwan, the company subscribed Wandashan 50% stake in Sanlu Dairy Fonterra purchased 43% of the shares. In recent years, foreign attack on the Chinese dairy market, setting off another wave. A few years ago, the Italian Parmalat, the United States Kraft, Unilever and other multinational giants have entered China’s dairy market, they have crashed out of the return.
Mr. Guo Xueyan (left) interviews Ben Wang
Fonterra years has been low-key development, science research and analysis of Guo said Fonterra had not ignore the work of one, that is, understanding the Chinese market conditions. In their view, in China, consumption of dairy products have a very good prospect. Although foreign countries have been compared with different stages of development, but the process is the same. Residents knowledge about dairy products more and more residents of diet dairy products have become part of the Asian region, such as Korea, Japan, China, and their consumption patterns have many similarities, both in liquid milk, yogurt as a major platform, only the cheese side, and South Korea and Japan a little bit different.
But in other countries, dairy consumption and GDP growth is generally close to the ratio, while in China, dairy development speed is twice the GDP growth rate. In the past five years, even decades, the Chinese dairy industry is 20% or greater percentage increase in this rather special. Because of this difference, constant natural that the Chinese people in China in addition to increased consumption outside the acceptance of the dairy country more than others. Looking back over the point of view, Fonterra analysis, there is a larger source of the vitality of the dairy market. Like Taiwan, the Philippines, Indonesia, Malaysia, South Korea has a domestic dairy industry, but – relatively small. The scale of development in China’s dairy industry had a lot more than New Zealand, Australia, bigger market, the momentum is likely to be a one of the largest dairy development. Guo science research that the Chinese dairy market could become another United States, the dairy side strong domestic demand, domestic production will have a great size, into a very large self-contained market. While also maintaining a very active foreign cooperation. Including technology, investment, supply of raw materials, import and export of multilateral cooperation, as if the same relationship between the United States and the European Community.
Mr. Guo Xueyan (left) and Ben Wang staff photo
While Fonterra is not only to China as a dairy base, China, Fonterra has a very important as their foothold, not just a market, and milk. The Chinese market as a whole, China will establish a complete supply chain, from milk, ranch, processing and selling, through different channels to do the best for-milk products to consumers.
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