Fonterra CEO Miles Hurrell delivers welcome remarks. [Photo provided to chinadaily.com.cn]
New Zealand dairy giant Fonterra is doubling down on the Chinese market after receiving official recognition under the newly launched New Zealand Grass Fed Standard, a move aimed at strengthening its premium positioning as a dairy producer and exporter.
New Zealand Prime Minister Christopher Luxon, who is on an official visit to China this week, presented the co-operative with a certificate recognizing Fonterra's grass-fed scheme under the newly launched standard in Shanghai.
"China is our most important strategic market," said Teh-han Chow, CEO of Fonterra Greater China and president of global food service Fonterra.
"For nearly half a century, we have achieved tremendous business growth in China by partnering with Chinese customers in nutrition and innovation."
The New Zealand Grass Fed Administrative Standard sets a global benchmark for high-quality grass-fed dairy. It stipulates that dairy cows must consume a diet comprising at least 90 percent grass-fed feed and spend a minimum of 8 hours per day on pasture for 340 days a year on average.
Teh-han Chow, president of global food service and CEO Greater China, Fonterra, gives welcome remarks. [Photo provided to chinadaily.com.cn]
The move comes at a time when New Zealand dairy exports to China are surging, buoyed by the full implementation of the China–New Zealand Free Trade Agreement in January 2024. Under the upgraded terms, all New Zealand dairy products now enter China tariff- and quota-free.
In the first quarter of 2025, New Zealand's dairy exports to China hit $2.38 billion, up 40.8 percent year-on-year, according to trade data. China accounted for 30 percent of New Zealand's total dairy exports in 2024.
Fonterra CEO Miles Hurrell credited the strong bilateral relationship for the company's sustained growth. "Our growth in China benefits from the healthy relationship between our two nations. The strong bilateral relationship underpins business growth and confidence in the development of the Chinese market. Looking ahead, Fonterra remains committed to serving as a model of successful collaboration between New Zealand and China."
