Strong NZ-China Relations Boost Business and Innovation, Fonterra Greater China CEO Asserts
Source: The DairyNews
In an exclusive interview with Xinhua, Teh-han Chow, the CEO of Fonterra Co-operative Group Limited for Greater China, highlighted the robust and mutually beneficial relationship between New Zealand and China as a key factor in the dairy giant's success and expansion in the region.
Fonterra, a cooperative owned by thousands of farming families, has been operating in China since 1973, evolving alongside China's own rapid development. "Initially, our focus was primarily on servicing hotels in the early 1970s. Over the years, as China has developed, we've expanded significantly into tea shops, restaurants, and bakeries," Chow explained.
China now represents about one-third of Fonterra’s global volume, making it the most critical market for the company. "The continuous growth in consumer sophistication and demand within China presents a tremendous opportunity for us," said Chow. He emphasized innovation as a pivotal component of Fonterra’s strategy to further penetrate the Chinese market, which is characterized by consumers eager for new products and experiences.
Chow praised the ongoing ease of doing business in China, noting significant improvements over the years. "The welcoming nature towards foreign businesses and the increasingly fair playing field have allowed us to offer high-quality products that Chinese consumers are looking for," he commented.
Reflecting on the broader trade relationship, Chow remarked on the positive impact of the Free Trade Agreement (FTA) between New Zealand and China. Initiated in April 2008 and enhanced with an upgraded agreement in April 2022, the FTA has facilitated a thriving trade environment. "This foundational relationship between New Zealand and China not only benefits Fonterra but also opens up numerous opportunities in the world’s largest consumer market," he concluded.
China now represents about one-third of Fonterra’s global volume, making it the most critical market for the company. "The continuous growth in consumer sophistication and demand within China presents a tremendous opportunity for us," said Chow. He emphasized innovation as a pivotal component of Fonterra’s strategy to further penetrate the Chinese market, which is characterized by consumers eager for new products and experiences.
Chow praised the ongoing ease of doing business in China, noting significant improvements over the years. "The welcoming nature towards foreign businesses and the increasingly fair playing field have allowed us to offer high-quality products that Chinese consumers are looking for," he commented.
Reflecting on the broader trade relationship, Chow remarked on the positive impact of the Free Trade Agreement (FTA) between New Zealand and China. Initiated in April 2008 and enhanced with an upgraded agreement in April 2022, the FTA has facilitated a thriving trade environment. "This foundational relationship between New Zealand and China not only benefits Fonterra but also opens up numerous opportunities in the world’s largest consumer market," he concluded.
