Fonterra partners for milk supply

Fonterra announced earlier this year that it has partnered with Alibaba’s Hema, to supply a new Daily Fresh milk range to the supermarkets. The fresh milk comes in 750ml bottles, sourced directly from Fonterra’s farm hub in China’s Hebei province.

The New Zealand dairy giant says initial volumes of its fresh milk are around three metric tonnes a day, with plans to scale up over time and expand with Alibaba as it progresses its rapid expansion of stores across China.

In addition to fresh milk, Fonterra also offers Anchor UHT milk products and its range of butter, cream, and cheese products in Hema. The in-store bakery uses Fonterra’s Anchor Food Professionals products in its items.

Hema Fresh’s CEO and Founder Hou Yi says he is excited by the strategic co-operation between the two companies.

“This co-operation between two powerful companies is set to redefine the concept of fresh milk in the new retail era. As a global leader in the dairy industry, Fonterra is well-known for quality milk pools, world-class breeding techniques and advanced experience in food safety and quality, which matches well with what we advocate.”

President of Fonterra Greater China Christina Zhu says the new product highlights how Fonterra’s business in China is leveraging the strength of its local milk pool, spread across three farming hubs.

“No other multinational dairy company in China has a local milk pool to draw from, so we are in an advantageous position.

“This milestone with Hema is a sign of things to come and indicates that our push to shift more of our local milk into higher-yielding consumer and foodservice products is well-and-truly under way.”