Fonterra invests $30m in Hebei dairy farm

08:08, October 21, 2010      

Email | Print | Subscribe | Comments | Forum 

New Zealand Fonterra Co-operative Group Ltd, the world's biggest dairy processing company, on Wednesday announced an investment of 200 million yuan ($30 million) in a dairy farm in Yutian, Hebei province.

The milk giant will transport 3,000 New Zealand cows to Yutian, where it expects an annual output of 32 million liters.

"We believe China's growing demand for high-quality dairy products will be met by locally produced milk supply," said Fonterra Chief Executive Officer Andrew Ferrier.

According to the company, the Yutian farm will be ready for milking in November 2011. It will focus on providing fresh milk and related products such as yogurt and infant formula to local consumers.

Fonterra said in 2007, when it set up a joint farm with Sanlu in Tangshan, Hebei province, that it would build five to six dairy farms in China within the next few years.

Fonterra's turnover in China, covering locally produced and imported dairy powder and other dairy products, reached NZ$1.3 billion ($854.23 million) in 2009, up nearly 10 percent from 2008.

Fonterra's joint venture farm with Chinese dairy company Sanlu Group Co was launched just before the melamine-tainted milk powder crisis in September 2008. The crisis caused Fonterra to lose almost all of its $107 million investment in Sanlu.

Ferrier said that this case further highlighted the importance of dairy supply chain safety and encouraged his company to set up farms in China.

According to Philip Turner, managing director of Fonterra China, the farms would be located in Hebei province because it is especially close to big cities such as Beijing and Tianjin.

"Fresh milk and dairy products have to be sold near the production area, this amount of investment by Fonterra will definitely have an impact on local dairy companies, especially Beijing-based Sanyuan Foods Co Ltd," said Wu Zhengwu, a beverage industry analyst from Aijian Securities.

Source: China Daily

(Editor:祁澍文)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion