Murray Goulburn's tough lesson in Vietnam

Australia's biggest milk processor Murray Goulburn has high hopes of strengthening trade with Asia – but it knows full well the challenges of building a successful export business.
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The farmer-owned co-operative’s dairy goods have never been counterfeited – it prides itself on ensuring the integrity of its products – but its Devondale brand has been appropriated.
A former Vietnamese distributor for Murray Goulburn registered Devondale as a trademark in the country in 2013.
Devondale is not only a well-known brand in Australia, having products in most dairy categories. In Vietnam its UHT milk is regularly stocked on the shelves of convenience stores and supermarkets, and in China it’s the third-biggest dairy importer.
The Vietnamese distributor didn’t start making its own UHT under the Devondale brand, instead it pursued Murray Goulburn for trademark infringement.
The battle ended with a commercial settlement with the former distributor.
Murray Goulburn is adamant it has learnt from the lesson.
«We have taken action to ensure our trademark portfolio is protected internationally,» a spokeswoman said.
And that’s a key part of ensuring its growth strategy – outlined in its $500 million partial float on the ASX last month – is successful.
Managing director Gary Helou has repeatedly said engaging with Asia and reconnecting with the Australian market is important for the Australian dairy industry.
Asian consumers, particularly in China, have an appetite for Australian dairy products, which have been free from the milk controversies that have plagued the region in the past seven years and highlighted the risk of brand damage.
In 2008, New Zealand’s Fonterra, the world’s biggest dairy exporter, was embroiled in scandal after its Chinese partner Sanlu Group was identified as one of the 22 companies that added melamine, a toxic compound, to infant formula in an effort to boost its protein count.
Five years later the New Zealand co-operative was briefly locked out of key markets after it recalled products following a positive test for botulism, which eventually was proved to be false.
In March, New Zealand’s dairy industry was again left scrambling to reassure its customers that its products were safe following anonymous threats to poison infant formula in New Zealand.
While China’s food control regulator has said there had been no reported cases of poisoning in China, it urged New Zealand to increase its safety efforts.
 
Source: SMH
 

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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