Peters calls for added-value dairy exports
Fonterra’s joint venture with Chinese infant food maker Beingmate has ‘‘warning bells all over it’’, Winston Peters has told people in a speech at North Harbour Rotary.
The New Zealand First leader questioned why the co-operative instead did not add value to its raw materials, create jobs in New Zealand and establish New Zealand as the world-class centre for the development, production and marketing of infant formula to the world.
He accused Fonterra of ‘‘doing the reverse’’ of two large Chinese state companies, Mengniu-Yili, which were building a plant at Glenavy in South Canterbury and Yashili, who are building a processing plant in Pokeno.
‘‘Why are we allowing Chinese companies to enter New Zealand, mix-blend imported milk powder from their Chinese operations with New Zealand dairy powders and trade off Brand New Zealand back in China, claiming it’s made in New Zealand and is a product of New Zealand?
‘‘Why are they using transfer pricing, and inter-company trading to undercut New Zealandowned companies who are trying to trade and use the China-New Zealand Free Trade Agreement to our advantage, and opening the doors for Chinese companies to set up in New Zealand and use the FTA to China’s advantage.’’
He said there was the ‘‘worsening issue’’ of sovereignty and brand New Zealand being determined by Chinese officials as to which industrial dairy plants they would recognise.
‘‘In a few year’s time where dairying is concerned, it will not be in control of its own destiny.
‘‘We will be developing raw-based material, sell it as a commodity at the lowest end of its value and be letting Chinese owned and controlled companies add value and earn valuable export earnings, which New Zealand companies should be earning.’’
In a written response, a Fonterra spokesman said their research and development centre in Palmerston North was recognised as a world leading centre for dairy innovation.
‘‘Our partnership with Beingmate gives our Anmum brand, which is produced here in New Zealand, a direct line into the infant formula market in China. ‘‘With $755 million worth of investments at Lichfield, Edendale and Pahiatua confirmed, we will be creating more than 125 full time jobs not to mention the hundreds of builders, labourers and others who will be working during the construction phase.’’