Chinese Opportunity
Fonterra has made the biggest ever investment in the Chinese dairy industry by a foreign company by purchasing a 43% stake in the Shijiazhuang San Lu Group for US$107 million. The San Lu Group produces powdered milk, liquid milk and fresh dairy products, and is predicting sales of US$925 million in China this year. According to Fonterra chief executive Andrew Ferrier, the investment reflects Fonterra’s confidence in the future of the dairy industry in China, where dairy consumption has doubled in the last five years.
