In a savvy move to solidify its standing in the Chinese market, Fonterra, a key player in the global dairy industry, orchestrated an immersive experience for its authorized resellers.
Led by Casey Thomas, Vice President of New Zealand Milk Products (NZMP) Greater China, the representatives delved into the heart of Fonterra’s operations during a week-long excursion in Auckland.
The visit encompassed a comprehensive tour of a dairy farm, manufacturing site, and Fonterra’s headquarters, offering resellers a firsthand glimpse into the meticulous journey of New Zealand milk—from its origin on the farm to the manufacturing processes that make it stand out.
With a third of the global contracted volume on the GDT auction platform under their belt, Fonterra’s authorized resellers in China are pivotal players in the cooperative’s ingredients business. The relationships forged over the years have proven resilient, with some resellers maintaining a steadfast presence at GDT events since its inception in 2008.
The longevity of these partnerships extends beyond mere transactions. Fonterra’s authorized resellers, some collaborating for over two decades, actively contribute to the development of new sales channels, providing stability in the volatile dairy commodities market.
Casey Thomas emphasizes the critical role these resellers play, stating, “Our authorized resellers are our critical partners. They work alongside our sales team to provide high-quality services to our customers, support market insights and compliance, and expand our customer base.”
Fonterra’s business focus in China centers on key ingredients like whole milk powder, skim milk powder, cheese, probiotics, and protein. These ingredients serve as the building blocks for a diverse range of products in China, including staple items like drinking milk and infant formula, as well as unique offerings such as cheese lollipops and Chinese pastries like pork floss rolls.
China has been a pivotal market for Fonterra, and the favorable margins in the ingredients channel, particularly in the cheese and protein portfolios, have significantly contributed to the cooperative’s robust financial performance in 2023.
