Murray Goulburn Co-operative Co Ltd, Australia’s biggest dairy producer, said its managing director quit on Wednesday [27 April 2016] as it blamed weaker-than-expected China sales for a profit warning. The earnings downgrade from Australia’s biggest exporter of processed foods underscores the risk companies take by leaving themselves exposed to changes in Chinese consumer demand and unfavorable moves in foreign exchange rates…Full Article: The Global Times Apr 2016

Key Point

  • From July to December 2016, Chinese imports of milk powder from Murray Goulburn Co-operative tripled, but dropped off in February 2016 (Chinese New Year). Imports recovered slightly in March 2016 only to fall again in April.

ChinaAg Comments

  • In March 2016, Murray Goulburn Co-operative announced plans to construct a US$208 million milk powder factory (~45,000 MTs annual production capacity) in Victoria State, Australia. The factory was slated to open in 2019 and would be built in collaboration with Mead Johnson Nutrition (USA) and Kalbe Nutritionals (Indonesia).
  • As of early 2016, Chinese e-commerce websites/distributors (e.g. Alibaba Group) reportedly account for 66% of China’s dairy product imports.

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