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Home / The Country / Listen

How Fonterra's Greater China business is tackling Covid challenges

The Country
10 Feb, 2022 08:00 PM3 mins to read

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Demand for dairy continues to grow in China but Covid-19 is still a challenge, CEO of Fonterra's Greater China business Teh-han Chow says.

The annual growth rate for dairy consumption was just over 5 per cent a year, Chow told The Country Sport Breakfast's Brian Kelly

"People here are more willing to invest in their health and wellbeing and are really receptive to products with premium quality. So we're actively promoting new uses for our products."

However, there were still occasional disruptions due to Covid lockdowns in certain cities and prevention measures had intensified recently with the Beijing Winter Olympics, Chow said.

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There were also continued sensitivities around cold-chain importing procedures.

Fonterra recently experienced Covid disruption first-hand when 26 of the co-op's people were placed under a 14-day centralised quarantine.

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It was "pretty tough" but Fonterra kept an eye on those affected, Chow said.

"We reached out to them and I personally contacted each and every one of them to see what we could do for them or their families and maybe offer a little bit of encouragement in a very difficult situation."

Fortunately, everybody came through the quarantine safe and sound, Chow was pleased to report.

The experience was a timely reminder of the effect Covid changes and restrictions could have on people, he said.

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"Anywhere in the world, Covid challenges people's wellbeing and resilience … so it's really important that we continue to look after our people during these stressful times."

The co-op's dedication to its employees was rewarded recently with "2022 Top Employer" and "Best Place to Work" awards in China.

The Top Employer certification is awarded to organisations that achieve the highest standards of excellence in employee conditions.

The Best Place to Work title was based on research conducted by Great Place to Work Institute in more than 50 countries, Chow explained.

"They look at workplace excellence, management and the role of trust in workplace culture."

The recognition reflected the efforts Fonterra put into creating a supportive working environment that motivated the co-op's Good Together spirit, Chow said.

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"I think this is really important because it also helps us to attract and retain really great people, which can be very difficult in a fast-growing and competitive market like China."

Also in today's interview: Chow talked about Mozzarella on dumplings to celebrate Lunar New Year, Fonterra's involvement in China's first ambient cream cheese yogurt.

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