"We see that the demand for health and wellness solutions in the Chinese market is increasing, especially in the field of nutritional products," said Zhou Dehan, CEO of New Zealand dairy giant Fonterra Greater China, in an interview with Xinhua News Agency. "Fonterra continues to see huge development opportunities in China.".
China has become New Zealand's largest trading partner and largest export market for many consecutive years. Many New Zealand dairy companies, including Fonterra, are optimistic about the development prospects of China and have been continuously cultivating the Chinese market for many years, in order to seek greater development opportunities in the growing demand of the Chinese market.
In 2023, Fonterra established its fifth application center in Shenzhen, China, and recently upgraded its application centers in Shanghai and Beijing. Zhou Dehan stated that Fonterra has achieved tremendous success in China, which is one of its most important markets. To support innovative products for local customers, Evergrande's sixth application center in China will open later this year.
Roy Vandenke, CEO of New Zealand Dairy Co., Ltd., told Xinhua News Agency that the demand for high-quality dairy products from Chinese consumers is increasing, and New Zealand dairy brands "connect the entire industry chain from New Zealand ranches to Chinese dining tables.".
He said that thanks to the upgrade of the China Singapore Free Trade Agreement, all dairy products exported from New Zealand to China enjoy zero tariffs, which opens up broader prospects for cooperation between dairy companies in the two countries.
China is an important destination for New Zealand's milk powder exports, and in recent years, cooperation between dairy companies from the two countries has been increasing. China Mengniu Group has established a Mengniu Yashili factory in the Waikato area of North Island, New Zealand, specializing in the production of infant formula milk powder products; Yili Group is building a new lactoferrin factory on the South Island of New Zealand. These projects have become benchmarks for cooperation between China and Singapore Dairy Industry.
According to data released by the New Zealand Bureau of Statistics, the bilateral trade volume between New Zealand and China in 2023 was more than four times higher than when the free trade agreement between the two countries came into effect in 2008. Compared to the annual data as of April 2008, New Zealand's milk powder exports to China for the year ended April 2024 increased by 987%, and the export volume increased by 1004%.
New Zealand Trade Minister MacLey recently expressed confidence in New Zealand's reputation as a safe, healthy, natural, and nutritious food producer in China.
New Zealand Prime Minister Larkson said at the New Zealand China Business Summit held in Auckland in May that trade is the lifeblood of New Zealand's economy, supporting a quarter of the country's employment. The government's goal is to build New Zealand into an export powerhouse, which cannot be achieved without success in the Chinese market.
