New Zealand Foreign Minister plans to visit China
John Key said that New Zealand's Foreign Minister Murray McCurry planned to visit China within a few weeks. From the current situation, New Zealand Trade Minister Tim Groser is likely to join the delegation. John Key also welcomed the recent visit of the Chinese Food Safety Supervision Department to New Zealand and promised to hold talks with the delegation on the contamination of Fonterra whey protein.
New Zealand dairy exports exceed $ 10 billion
Few countries have made such a dynamic crisis PR for a company's product, but New Zealand is not surprising. Hong Kong's "Oriental Daily" said that New Zealand is the world's largest exporter of dairy products. The export value of dairy products exceeds 10 billion U.S. dollars each year, accounting for 1/4 of the country's total export trade. Great discount. The impact of the incident on New Zealand's economy is still difficult to estimate for the time being, depending on whether the New Zealand government can deal with it quickly and effectively, and also on China's attitude.
Taking last year as an example, New Zealand's exports to China were about NZ $ 6.9 billion, of which dairy products accounted for 37%. If the incident is completely resolved in a short period of time, China will continue to import a large amount of dairy products into New Zealand after obtaining quality assurance from the New Zealand authorities. Of course, everyone will be fine. If the situation changes, the Mainland will diversify its risks and develop for the sake of other reasons. More diversified sources of dairy products will inevitably have a profound impact on New Zealand's future dairy exports.
At the same time, more products related to toxic milk powder have been recalled in China. According to the BBC report on the 6th, the American healthcare giant Abbott acknowledged that the company's two batches of infant milk powder supplied to China may be affected by Fonterra Botox. Abbott issued a statement on its Chinese website, stating that two batches of 7,181 cases of Abbott ’s gold-plated toddlers Xikangli 3 (children over 1 year) tinned milk powder may be contaminated with botulinum. Abbott said 112 of the 7,181 cases of milk powder that have been identified as potentially contaminated have been sold, and the company will preventively recycle and destroy these products. Earlier, three companies, including China Wahaha, Coca-Cola and Dumex, have been disclosed to import problematic whey protein powder, and have initiated recall procedures.
China discounts foreign brands' trust
German news television commented that the "poisoned milk powder" warning from New Zealand reminded Chinese people of the 2008 milk powder scandal. "Baby food is primarily based on trust," a principle that applies worldwide. The Fonterra scandal is likely to lead to a highly emotional Chinese consumer and distrust of foreign milk powder, which is a red flag for foreign milk powder manufacturers. Fonterra's CEO is now begging for public pardon in China, but consumer excitement is hard to restrain. Experts worry that Beijing may rightfully erect new trade barriers after the incident. In this way, Chinese milk powder brands may usher in a new turning opportunity.
The Associated Press reports that the New Zealand dairy panic has discounted Chinese trust in foreign brands. The botox panic has damaged the reputation of New Zealand milk powder, a brand that once won a lot of fans and now has a bad taste.