Recent hubbub Botox event, once again one of the world’s largest Fonterra milk prices pushed to the cusp.
Originally, this raw material supply to dairy-based business is not for the light moms are well aware, however, back up, but with China Fonterra dairy industry is closely related to several major crises, in addition to the meat, which is okamotoi protagonist of the event, was also in the impact of China’s melamine dairy history plays an important role, but also the melamine milk powder two first discoverer.
Although Fonterra
three incidents are the major players, but the same is “exposing” are.
Although short Fonterra’s brand has been questioned, but the long-term perspective, Fonterra choose to supply chain visibility attitudes and practices, but it’s from the crisis quagmire extricate yourself.
Exposes scandalous to maintain brand image and value
Fonterra and Chinese origins can be traced back to 1972 China established diplomatic relations with New Zealand just when the then China will send a delegation of the “New Zealand Dairy Board” (one of the predecessors of Fonterra), also since then, the constant natural for the Chinese market began to infant formula, and started doing business with China.
2005, Fonterra only to 864 million yuan stake in Sanlu Group to become its second largest shareholder, but ended up “Dead Before the Ship Even Sank,” the helpless situation.
Cooperate with Sanlu Fonterra
after informed Sanlu and other domestic enterprises in the infant formula milk added melamine, Sanlu Fonterra and local government officials in spite of opposition from the information reported to the New Zealand government, and ultimately by the New Zealand government to come forward, informed of the situation through diplomatic channels, the Chinese government, the melamine incident to be made public, but because of the Sanlu Fonterra investment wasted suffered financial losses 200 000 000 New Zealand; its subsidiary AVENT milk powder brands, Ama, also cause Sanlu management and part by the Sanlu milk supply while affected, had to withdraw from the Chinese market.
That time the Chinese dairy industry, there is a problem in a fire, possession of less problems in the market environment, not to mention “exposes scandalous”, and Fonterra’s move to China milk prices “amazing.”
2010, Fonterra announced a high-profile return to China, in addition to its own brand AVENT, Amano return to the Chinese market, China Fonterra also invest in new pastures, and trying to develop processing industries.
Melamine, two melamine incident can be said to provoke the Chinese consumers sensitive nerve. Although the two have not evolved into the melamine food safety incidents, but because of its very close with melamine name, but also really made a public panic, but also to bring the brand image of Fonterra hit. Fonterra Group, responsible person with the “First Financial Daily” reporters explained that two of melamine in the world are not included in the scope of testing Fonterra detected amount is also within the scope of EU regulations permit, you can not say with food security incidents, but in order to allow trading partners to understand the situation, to avoid unnecessary misunderstanding Fonterra promptly to disclose the situation.
This exposes scandalous, though not a big problem, not part of food safety incidents, do not need to recall, but announced this situation needs to withstand great pressure. That time, the layout of Fonterra China is already the second critical period, and two melamine and melamine similar name, can easily lead to unnecessary public associations, and finally bring harm to the brand.
Just when everyone thought that Fonterra will corpuscles burst when after less than a Fonterra again “exposes” the outbreak of botulism, so once again into a systemic crisis Fonterra: hundreds of tons of milk powder recalled Partner complaint, global consumers questioned, criticized the New Zealand Government …… This series of events that Fonterra again deep mud.
Fonterra select “exposes” the practice of some domestic milk prices are still so puzzled, however, it is well versed in crisis solution must be based on transparency and openness as a prerequisite, so far as possible to make their supply chain transparency Meanwhile, the supply chain is not mutual, “cover”, refusing to find reasons and, indeed, the norm of the crisis and effectively “separated” out.
Supply chain transparency responsible consumers
Course, supply chain problems timely publication of supply chain transparency is just an important part. A dairy experts said, the real supply chain visibility ranging from milk, production, processing, testing, packaging, listing both frank and open transparency so that the public understands them to buy every piece of dairy milk produced in which ranch, production and processing of whom, who testing, packaging and where, and through what channels into the hands of consumers, each link in the chain in a timely manner so that any problems can be informed consumers. This is the real supply chain transparency.
The experts believe that Fonterra in this regard is clearly not done enough, “such as its customers in China which, for each of the hundreds of tons of milk powder exports to China, where the flow of the milk is difficult to find out.” This is also the Fonterra and the unnamed client case open conflict between reason cause.
Hand, the domestic enterprises, although the melamine incident also led to a supply chain transparency movement, milk prices have started to expand on the chain transparency reforms, so a bottle of milk from milk to processing to packaging to the factory can detect more open and transparent, can be traced; But this country more transparent campaign played a leading role in the government, announced dairy problems in almost all governments, enterprises rarely seen “self-exposure.”
“If you are not able to even encounter problems timely and transparent disclosure, then no amount of transparency in the supply chain are also just a show.” One dairy experts said.
Source：Stock Mark Watch