Enterprise in Jing’an: Fonterra’s indigenization experience


 (Reporter: Shi Danni) Fonterra Group, the dairy company registered in Jing’an in 2005, has a history of over 100 years. The company mainly produces raw materials for dairy product and is also the supplier for high-quality dairy manufacturers such as Abbott and Beingmate.


Fonterra Group is the largest company in New Zealand and the fifth largest dairy manufacturer in the world. Its products have exported to over 140 countries and regions. Fonterra’s business in China developed in 1970s and has lasted for over 40 years.


According to the relevant responsible person in government and external affairs department of Fonterra, China is one of the most important markets of Fonterra. The company is based in Shanghai, with branches in Beijing and Guangzhou and breeding bases in Tangshan, Hebei and Yingxian, Shanxi.


From pasture to dining table

As a dairy company, Fonterra takes food safety and quality as the cornerstone for all the works. Fonterra’s advantage lies in its full control and management in the supply chain from “pasture to dining table”, which results in the possibility of tracing the source of each product and regularly checking and sampling each link in the whole supply chain. The company annually conducts over 700 thousand tests to the transportation of raw milk, over 3 million quality tests to the raw milk in the laboratory and over 3.5 million quality tests to end products and other links.


Additionally, Fonterra actively promotes the knowledge and technology of food safety and launches communication and training. Up to now, there are more than 2500 Chinese dairy farmers participating in Fonterra dairy farmer training program to learn about safety production methods and high-quality raw milk. Besides, Fonterra has founded China-New Zealand dairy industry communication center jointly with China national cow industry technology system; launched food safety and quality communication training program with China National Research Institute of Food & Fermentation Industries to boost sustainable development of China dairy industry. Meanwhile, the company vigorously conducts consumer education and discusses food safety and nutrition online and offline.


It is reported that Fonterra has established seven regional research and development center in the world, including China, New Zealand, Germany, Mexico and Australia. It is devoted in promoting and spreading the dairy product knowledge in each link “from pasture to dining table” by employing cutting-edge technology to boost the sound development of dairy industry. The Fonterra application center, based in Shanghai, is founded in the end of 2014 and mainly develops innovative dairy recipes for its clients and conduct professional training for the local clients.


Fonterra has set up four major integrate dairy business in China. Anlene, Anmum and Anchor are all famous consumer brands under Fonterra. Anchor is the flagship brand for daily nutrition. Anlene is the core brand of Fonterra and aims at improving human’s bone health. Anmum is a nutritious milk provider for pregnant women, nursing women and infants.


The company provides high-quality dairy raw materials from New Zealand for a large number of Chinese top-class food enterprises and provides high-quality cheese, cream, butter and other dairy products for bakeries, restaurants, hotels and fast food restaurants. In China, more than half of the pizzas are employing Mozzarella cheese produced by Fonterra. Over half of the large bakery chains are using Fonterra butter, cream and cheese. Fonterra has expanded its catering business to 29 cities and continues to expand to more second-tier and third-tier cities in the following years.


In 2007, Fonterra built up the first trial pasture in China, and produced New Zealand-standard milk in China. Now, Fonterra operates a breeding base in Hebei that has 5 pastures and 15000 cows, producing 150 million liters high-quality milk annually. The second breeding base in Yingxian, Shanxi is under construction. Fonterra holds that the local pasture can supply local high-quality milk and better satisfy the demands of Chinese consumers.


This year, Fonterra and Beingmate, the famous mother & baby brand, become strategic partners. The cooperation between Fonterra and Beingmate will help satisfy the increasing demand of Chinese and global consumers on high-quality baby formula milk powder and jointly contribute to China dairy industry development. The company makes use of the milk sources and manufacturing bases in New Zealand, Australia and Europe to first build up the complete supply chain from pasture to dining table for Chinese consumers.

Ten year public good experience in Jing’an


As to the question why Fonterra founded its China headquarter in Shanghai and based in Jing’an, it holds that as the center of a cosmopolitan city, Shanghai, Jing’an district is a vigorous and flourishing area. Jing’an district is also well known for its “tasteful business district” and “high-quality living area”, which provides the public with highest-quality business and living environment. As the pioneer in global dairy industry, Fonterra is constantly devoted to providing consumers with the highest-quality nutritious dairy products. That’s why Fonterra chose to base in Jing’an district at first.  


Jing’an district always pays much attention and offers much support to industry leading enterprises. Fonterra has obtained public services and support from relevant government agencies in Jing’an district for years. Meanwhile, it focuses on improving its business to make contributions to the society.


In April, 2009, China Soong Ching Ling Foundation and Fonterra jointly founded “Fonterra rural mother & baby health program”. Fonterra promised in following five years it would allocate 1 million dollars annually to support the women and children health cause in outlying regions. The program aims at providing medical facilities and resources for pregnant and delivery women and training for rural community medical and nursing staff to develop the women and children health care skills of junior medical and nursing staff. Up to now, the program has benefited over 10 million rural people.


“Fonterra Scholarship” founded in 2010 aims at providing assistance for college students majoring in livestock raising or food and helping local food industry discover talents.


In April, 2014, Fonterra held the largest square dance contest in Shanghai with Shanghai elderly people sports association to encourage elderly people keep bone health and energetic life through dances. The activity covered 17 districts and counties of Shanghai and attracted nearly 10 thousand Shanghai elderly people.


Moreover, in China, Fonterra provides a series of support for bone health researches. As the official partner of International Osteoporosis Foundation, it offers funds for the bone health researches it conducts in Asia.


 (Source: Jing’an Times)