New Zealand dairy group Fonterra has formalised an agreement to give it greater access to the Chinese market with San Lu, after Fonterra acquired 43% of the Chinese dairy company last December.
Fonterra is the largest exporter of dairy products to China, but currently trade – valued at about NZD150m – is mostly in milkpowder.
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According to a report by the New Zealand Press Association, Fonterra China managing director Bob Major said that the deal represented a significant step-forward in Fonterra’s strategy for global growth.
”We bring complementary strengths to the joint venture and we are both well-established players in this market. The combination of rising incomes and a growing appetite for dairy is creating huge potential in the China market,” he said.
