Westland taps dairy taste of Chinese
Print Edition
WESTLAND Milk Products, New Zealand’s second biggest dairy co-operative, expects sales in China to more than double to US$200 million in the next three years as it taps rising Chinese demand for imported dairy products.
China is already the company’s single largest market by sales value and the dairy producer is shifting toward more value-added products as Chinese demand for high-end products has climbed over the past few years due to a series of food safety scandals. Last year China accounted for 17 percent of Westland’s global sales and two thirds of the company’s products go to Asia Pacific.
There is scope for increasing dairy sales as rising income of lower-tier city residents and the urbanization process will translate into a growing appetite for cheese, milk formula and other dairy products. Currently dairy products such as yogurt powder and butter make up less than 10 percent of sales in China and the rest, mainly milk powders and protein supplements, are sold to dairy producers.
“Moving away from being a commodity manufacturer and focusing on high margin products is a clear vision for the company and China has presented huge potential in terms of demand for higher margin nutritional products,” said Gregg Wafelbakker, sales and marketing manager at Westland, in Shanghai yesterday.
Earlier this year, Westland gained regulatory approval to export dairy products including infant formula milk powder to China. But the company has yet to decide when to launch infant formula in China’s market.
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