FONTERRA’S sales in China are nearly back to pre-botulism scare levels and in the ingredients business they are higher, chief executive Theo Spierings says.
Mr Spierings has travelled the world in the last two months, meeting 5,000 business people, in a bid to rebuild the company’s reputation after a recall of its whey protein powder in August damaged its reputation. It turned out the powder was not contaminated.
In the initial two weeks after recall, Fonterra’s sales in China dropped to below 50 per cent of pre-scare levels but they are now back to 90 to 100 per cent, Mr Spierings told Radio New Zealand (RNZ).
«In the ingredient business we are 25 per cent to 30 per cent over last year,» he said.
In Sri Lanka, sales dropped to 20 per cent of previous levels and are now back to 80 per cent.
The company is in a rebuild phase following recall, review and recovery phases.
Mr Spierings also told the Weekend Herald that the company had been «sometimes too ivory tower, far-away, distant».
«Yeah, but the perception you read in the media: Fortress Fonterra. I don’t really like that. It’s not a fortress. We are the number one company of the country and we have a shared responsibility for this country. So we should be accessible.»
The company had «closed out» issues from the food scare with all of its customers except Danone, Mr Spierings told RNZ.
He said the company offered «value in the future» in re-negotiations of contracts.
There were still some issues with market access in Russia, he said.
The co-operative held an open day at the weekend to show off the world’s largest milk powder drier at its giant new factory at Darfield in Canterbury.
The drier was officially opened by Selwyn member of parliament and Environment Minister Amy Adams.
It has the capacity to produce up to 30 tonnes of whole milk powder an hour, and 700 tonnes a day.
Source: News
