Fresh Milk in Three Days: Theland Milk’s CIIE Story

Summary

New Zealand dairy company Theland Milk, a nine-time CIIE participant, has cut the farm-to-table time for its imported fresh milk from eight days to three by leveraging trade facilitation pilots. Under traditional logistics and inspection procedures, imported fresh milk often takes more than eight days to reach shelves, while the product's shelf life is only 15 days — meaning more than half of its shelf life has elapsed on arrival. At the first CIIE in 2018, Theland Milk became one of the first batch of trade facilitation pilot enterprises in Changning District.

Relying on innovative regulatory models such as 'separation of inspection and release' and 'inspection while transportation', it achieved 'zero waiting' customs clearance for fresh milk: milk milked on Monday, flown out on Tuesday, and delivered to consumers' tables on Wednesday. Sheng Wenhao, CEO of Theland Milk Asia Pacific, said this is both a microcosm of the 'CIIE speed' and a reflection of China's efforts to optimise the business environment through institutional innovation. Benefiting from this, Theland Milk's weekly sales of fresh milk increased from 3,000 bottles to a peak of 80,000 bottles, about 26 times the original, rapidly growing into a leading imported dairy brand.

At this year's CIIE, Theland Milk is exhibiting under the theme 'Nine Years of Full Attendance, CIIE Innovation'. Having organised group participation for three consecutive years, it has brought more than 30 New Zealand 'hidden champion' enterprises to the expo, with the group size expected to exceed 33 this year. China has now implemented zero-tariff policies for 63 countries.

In the first three quarters of this year, imports reached RMB 16.74 trillion, up 22.3 percent year on year, a record high for the same period, and China has been the world's second-largest import market for 17 consecutive years. With the full implementation of the China-New Zealand Free Trade Agreement, New Zealand-origin dairy products have achieved zero-tariff access to China.

Commentary

Theland Milk's case highlights the profound impact of China's trade facilitation reforms on fresh supply chains. China's imported fresh milk market has long been dominated by brands such as Fonterra and a2, but Theland Milk, by participating in CIIE pilots, has compressed customs clearance time to three days, enabling fresh milk with only a 15-day shelf life to efficiently reach consumers, with weekly sales jumping from 3,000 bottles to 80,000 bottles — validating the critical role of institutional innovation for short-shelf-life categories. For NZ SMEs, this model means small and medium-sized dairy enterprises can use mechanisms such as China Customs' 'separation of inspection and release' to bypass traditional distribution barriers and directly connect with retail terminals.

However, challenges remain: Chinese domestic dairy companies such as Yili and Mengniu are accelerating their layout in premium fresh milk, and cold chain logistics costs are high. NZ companies need to establish differentiated advantages in niche categories such as grass-fed and organic. In addition, Theland Milk's group participation, which brings more than 30 'hidden champions' to the expo, shows that a collective brand strategy can reduce market entry costs for individual enterprises.

With the full implementation of the China-New Zealand Free Trade Agreement, zero tariffs have lowered access costs, but the real competition lies in supply chain responsiveness and localised marketing capabilities. NZ SMEs should focus on incremental demand for imported fresh milk in China's second- and third-tier cities and consider cooperating with local e-commerce or community group-buying platforms to shorten last-mile delivery times.

Keywords: Theland Milk, imported fresh milk, CIIE, trade facilitation, logistics customs clearance, zero tariff, China-New Zealand Free Trade Agreement, Sheng Wenhao, New Zealand dairy products, business environment

Photo by Myriams-Fotos on Pixabay

Source: why.com.cn