Summary
Fonterra chairman Peter McBride told the Global Times on 28 October that the New Zealand dairy co-operative's ninth consecutive year at the China International Import Expo (CIIE) reflects its long-term commitment to China. McBride said Fonterra has achieved significant growth in China over nearly 50 years. He said China will host APEC in 2026, making it timely to focus on openness and co-operation,
and that Fonterra's experience shows open trade, stable relationships and mutually beneficial co-operation can create lasting value for participating economies and promote shared prosperity.
Commentary
Fonterra's ninth consecutive year at CIIE underscores the importance of China as its largest single market. Greater China accounts for about 25 percent of Fonterra's global revenue, and China accounts for about 20 percent of global dairy imports. About 95 percent of New Zealand's dairy production is exported, with China the largest destination.
For NZ SMEs, Fonterra's continued investment validates the long-term value of the Chinese market, but they should note intensifying competition: Australian dairy is regaining growth in China, and European brands are pushing into the premium segment. Since the upgraded NZ-China free trade agreement, tariffs on infant formula have fallen to zero, offering smaller dairy firms opportunities to enter China's tier-2 and tier-3 cities, though they must respond to the rise of local Chinese brands and shifting consumer preferences for functional and organic products. Fonterra's emphasis on open co-operation aligns with the tone of China hosting APEC in 2026, and NZ firms should watch for trade facilitation measures APEC may bring, such as mutual recognition of inspection and quarantine and expanded e-commerce channels.
Fonterra's experience shows stable relationships and localised operations are key; SMEs can use platforms such as CIIE to build channels but need to differentiate in niches such as grass-fed, organic or specific functional products to avoid head-on competition with majors.
Keywords: Fonterra, CIIE, Peter McBride, ninth consecutive year, China market, APEC 2026, open trade, mutually beneficial co-operation
Photo by manvinder social on Pexels
Source: China International Import Expo
Disclaimer: This article is compiled from publicly available sources for general information only. The analysis and commentary are editorial opinions. MiDeer Observer does not guarantee the accuracy or completeness of the information provided. Readers should seek independent professional advice before relying on this content, or contact us for more information.
