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
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
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.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataFonterra’s China revenue currently totals NZ$450m, including ingredient exports and sales through its joint venture.
