New Zealand dairy giant Fonterra to further investment in China
New Zealand dairy giant Fonterra Co-operative Group is looking forward to its business prospect in China as the company is to further its investment in the country, said its chief executive Miles Hurrell on Monday at the sixth China Business Summit in Auckland.
Fonterra is ambitious on continued growth prospects for New Zealand dairy in the Chinese market, said Hurrell to a fully packed audience floor of 500 guests from New Zealand Prime Minister Jacinda Ardern and Chinese Ambassador to New Zealand Wu Xi to business leaders and entrepreneurs seeking New Zealand-China business opportunities.
Hurrell confirmed that the company would continue to expand its presence on the ground in China by investing in a new research and development site in Shanghai as well as establishing a new application center in Wuhan next year.
Expanding its business beyond Shanghai to regional cities such as Wuhan is key to Fonterra's strategy in China, said Hurrell.
Despite the impact by COVID-19, New Zealand dairy export to China increased 25 percent in the first five months of 2020 compared to the same period in 2019, according to official data.
With the Chinese economy getting back to normal, the outlook of its business, especially the ingredients part, is strong, said Hurrell.
"No market is without risk but we've never been in better shape than we are today," he said.