ANZ's Li Gang Liu says the reputation of NZ's food should be restored, though consumers will be thinking twice about paying a premium.
The contamination scares that have hit New Zealand's two biggest dairy co-operatives this month will cause Chinese consumers to "think twice" about shelling out cash on expensive imported milk products, says ANZ's chief China economist.
But Hong Kong-based Li-Gang Liu reckons New Zealand's reputation for high quality milk will be
restored in the minds of consumers in the world's second biggest economy.
"In the long term most Chinese consumers will still trust the goods provided by New Zealand," said Li-Gang. "I think that has not changed fundamentally."
On Monday Westland Milk Products, the country's second biggest dairy co-operative after Fonterra, revealed it had found elevated levels of nitrate in two batches of lactoferrrin powder - a protein product - that had been exported to China.
That came after Fonterra announced earlier this month that 38 tonnes of whey protein it supplied to customers in seven countries, including China, was suspected of being contaminated with a bacteria that can cause botulism.
