New Zealand’s Prime Minister Chris Hipkins is aiming to promote a range of business-to-business partnerships during his trade mission to China this week.
As China‘s largest source of imported dairy products, New Zealand may promote emerging sectors like health and wellness as well as traditional goods. Our reporter Owen Poland has more from Auckland.
It’s some of the best grazing land in the world, and the organic milk these cows produce is being exported on daily flights to China.
MARK PULMAN CEO Green Valley Dairies “You know, it can be in China in a matter of days.”
Green Valley Dairies is a family-owned business that farms three and a half thousand cows, and they’re processing fresh milk for the Chinese market from their own factory.
MARK PULMAN CEO Green Valley Dairies “And this gives us the ability to track the raw milk directly from the cow, through the factory to the end user.”
New Zealand’s biggest dairy exporter is Fonterra, a co-operative of 9,000 farmers that generates annual revenues of more than 14 billion U.S. dollars. And it’s planning to tap into China’s emerging well-being market with a new range of nutritional products.
TEH-HAN CHOW Greater China CEO Fonterra “And so there’s a lot of opportunity for us, especially as the Chinese consumer becomes more focused on health and wellness, to be able to offer these solutions through our customers to consumers.”
OWEN POLAND Auckland “New Zealand has around six million dairy cows, that’s more than one for every human. And around 40 per cent of the milk they produce gets exported to China in products ranging from infant formula to cheese, even whipped cream.”
Infant formula is one of the most lucrative categories, but there’s also rising demand for adult milk powders.
DAVID SPURWAY CEO New Zealand New Milk “You’ve got an elderly population that needs servicing with nutritious product, and you’ve got a market there that really enjoys buying these products from New Zealand.”
And small businesses like Green Valley Dairies hope that Chinese consumers buy into New Zealand’s clean, green image and the focus on sustainability.
MARK PULMAN CEO Green Valley Dairies “I think we’re going to see a stronger demand for organic and knowing where your milk is coming from, you know, grass-fed, pasture-based, this very thing that we’re seeing here.”
This week’s trade mission to China is also seen as a way to enhance future co-operation.
TEH-HAN CHOW Greater China CEO Fonterra “We want to make sure that the trade lanes remain open, that there is beneficial exchange of ideas. And of course, the wonderful products that New Zealand can bring to China.”
Owen Poland, CGTN, Auckland.
