New Zealand dairy group Fonterra has signed a deal worth over NZ$300m (US$236m) to supply nutritional milk powders to a customer in China.
Go deeper with GlobalData
The deal was revealed by Philip Turner, Fonterra’s general manager of trade for Asia, at a parliamentary hearing on New Zealand’s recently-signed Free Trade Agreement (FTA) with China.
Fonterra declined to reveal the name of the new client but said it was a “large multinational”. The FTA played a major role in securing the contract, as tariffs on nutritional milk powders will be eliminated by 2012.
“These value-add dairy products will be manufactured in NZ factories using NZ milk, capital, labour and technology. Without the FTA with China, lower-priced product from NZ would almost certainly have been processed offshore in Asia,” said Turner in his submission to the hearing, seen by just-food.
The deal came within weeks of the signing of the FTA, which will come into effect on 1 October.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataFonterra’s China revenue currently totals NZ$450m, including ingredient exports and sales through its joint venture.
