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Home / Business

China pays dividends for stamina

30 Jun, 2000 03:24 AM2 mins to read

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By LIBBY MIDDLEBROOK

If there was a prize for stickability, the Dairy Board would probably win hoofs down.

After more than 20 years in the Chinese market, demand for home-grown milk products jumped by more than 75 per cent last year, one of the largest annual increases in two decades.

China is now
the third-largest market by volume for New Zealand dairy products behind the United States and Japan, generating revenues of about $US135 million ($282.4 million) for the past year.

"The last year has been a phenomenal year," said Brent Taylor, the board's general manager of north-east Asia, covering Hong Kong, China, Korea and Taiwan.

"It's probably our third-largest region today because we've been there from the start."

Exports to China for the 1999-2000 year, which winds up at the end of the month, are expected to total about 70,000 tonnes, four times more than five years ago.

Mr Taylor said the board, which markets and exports most New Zealand milk products, had increased exports through market share growth.

The board had three offices in China staffed by locals and was able to deliver excellent customer services and a wider range of products than many other dairy exporters.

"We've achieved success in the past few years because we're acting locally.

"Practically all of our staff are local and from a customer perspective I'm sure they feel like they are dealing with a local player with international quality products. Many of our competitors have no offices."

Mr Taylor said that because of increasing dairy product consumption, some areas of China did not have sufficient milk supply.

The board, which had 800 Chinese customers, was selling more than 50 per cent of exports to local dairy companies along with global food giants such as Nestlé.

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