Fonterra has launched its first Anchor milk pop-up store in Shanghai Super Brand Mall, adding to Asia’s growing dairy scene.
New Zealand dairy exporter, Fonterra, is reaping the benefits as the Chinese food industry starts incorporating dairy products into its food.
Who knew milk was such a not topic? Shots were fired this week when Lewis Road Creamery’s Peter Cullinane addressed an open letter to Theo Spierings, CEO of New Zealand’s largest and most global dairy brand, Fonterra. In the page-long letter published in The New Zealand Herald, Cullinane addressed what he saw as Fonterra’s “greedy” attempts at striking an exclusionary deal with North Island supermarkets which “would all but remove non-Fonterra brands” and give Fonterra “95% of the milk chiller”.
The word from retailers targeting farmers is that the low dairy payout has yet to filter through, but challenges may lie ahead. Fonterra’s forecast of its 2015-16 Farmgate Milk price dropped from $5.25 to $3.85 earlier this year, leading to a cut in income that DairyNZ chief executive Tim Mackle puts at around $150,000 per farm.