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Fonterra expanding dairying po

FONTERRA intends to invest in two more dairy farms in China, to continue growing a high quality and secure supply of milk on the ground.

Philip Turner, managing director for Fonterra China, said the Chinese dairy industry is wholesale colthing continuing to develop quickly but that the current supply of high quality fresh milk cannot keep up with demand. "We are looking to help grow a safe, secure and sustainable milk supply in China in order to meet this demand and expand our customer base," he said.

The China dairy market is set to become the world's largest in the next few decades and is forecast to experience double digit annual growth over the next 10 years. The Chinese Government has acknowledged that the development of the dairy farming industry is not only crucial for meeting the growth in demand, but also for developing rural communities and their livelihoods.

Turner said Tangshan Fonterra Farm, Fonterra's pilot farm in Hangu established in 2007, had succeeded in demonstrating that Fonterra can successfully produce New Zealand standard milk replica breitling in China. It has reached target production levels ahead of timetable and is producing record levels of milk for China. "We are confident that with further investment in good technology, people and high quality genetics, we can replicate this model on further farms. This will complement our New Zealand milk supply and help us better meet the needs of our key customers, who are increasingly looking for local sourcing capability," he said.

Fonterra has identified several possible sites for the new farms in Hebei Province and will consider partnering on the investment.

However, Turner said Fonterra would want to have full management of the farms.

"It is important that we keep the next two farms in close proximity to Tangshan Fonterra in order to achieve efficiencies in transport, milk supply and Fonterra management."

Turner said due diligence was already under way and the aim was to complete the final long- term lease deal by mid-2010.

Tangshan Fonterra is already producing its second generation of China born heifers, following two successful rounds of calving since the farm was first established. The total herd has grown to nearly 5800 cows, around half of which have been raised from the original imported herd of Friesians.

Each of the new farms is planned to be of similar size to Hangu, with around 35 hectares of land and around 3300 milking cows, creating employment and training opportunities for 350 people in Hebei Province.

Tangshan Fonterra manager and experienced veterinarian Todd Meyer said the second round of calving was proof that Fonterra had successfully adapted the New Zealand-quality herd to the farming environment in China. "We couldn't have asked for a better result. We have introduced new China-born blood into our herd and are meeting our production targets for high quality local milk."

Foggy weather to continue in e

Foggy weather to continue in east, central China

BEIJING, Feb. 8 (Xinhua) -- China's National Meteorological Center (NMC)extended its fog alert Monday afternoon, warning that heavy fog would settle for a period of time in some east and central China regions.

From Monday night to Tuesday morning, fog and haze were expected to cover central and western wholesale colthing regions of Liaoning Province, the central and southern regions of Shaanxi Province, most of the areas of North China, and regions along the Yellow and Huaihe rivers, said the NMC in an online warning statement posted at 6:00 p.m.

Some areas between the Yangtze and Huaihe rivers, and the eastern parts of the South tag heuer replica China regions would also be shrouded in fog, the NMC said.

Visibility would diminish to 1,000 meters in some parts in south Liaoning and Hebei provinces, the east regions of Shandong, Jiangsu, and Fujian provinces, with visibility in
embroidered patches some areas less than 500 meters, according to the NMC. The NMC warned that drivers should decrease their speeds, and urged related departments of the nation's airports, highways, and ports to take actions to ensure traffic safety. The NMC issued an alert at 6:00 a.m. Sunday, warning that foggy weather would affect most parts of the nation's north and central regions on Sunday.

Fonterra builds up Chinese pre

DAIRY giant Fonterra is extending its reach into China, negotiating to lease land by mid-year for two more New Zealand- style dairy farms in the world's largest emerging dairy market.

Fonterra China managing director Philip Turner said with the firm's pilot farm in Hangu, in Hebei province, performing profitably ahead of schedule and producing record levels of milk, the time was right for further investment.

The China dairy market is forecast to show double-digit annual growth over the next 10 years. The domestic dairy industry was developing quickly but the current supply of high-quality fresh milk could not keep up with demand, Mr Turner told BusinessDay from Beijing.

replica rolex "Some of the big companies are running large-scale production facilities of their own but the number of farms in China at our level of quality and safety of milk production would be under 20."

Milk safety in China is of high public concern after deliberate melamine poisoning of milk supplies two replica clothing years ago caused the deaths of several babies and made thousands of infants ill with kidney problems.

The melamine was added to raw milk supplied to processing factories to increase protein levels, thereby drawing a higher price.

Fonterra's joint processing venture SanLu was involved in the crisis, along with more than 20 other plants. SanLu was bankrupted and Fonterra is no longer involved in processing in China but is expected to announce a new venture soon.

Fonterra was earning premium prices for its fresh, high-quality milk, which it supplies to processors in China, Mr Turner said. It would consider partnership agreements for the new farms but would ensure it had full control of farm management.

The co-operative was eyeing farm sites in corn-growing areas for long-term lease close to its pilot Tangshan Fonterra farm, Mr Turner said. Corn is a staple diet of the 5800-strong herd on the 35- hectare feedlot farm.

The planned new farms would be of a similar size and carry about 3300 milking cows.

They would be a mix of cows imported from New Zealand and those raised on Fonterra's pilot farm, Mr Turner said. Tangshan Fonterra Farm is producing its second generation of China-born heifers. Half of the herd has been raised from the original imported friesian herd.