Dairy Giant Fonterra Replaces China Chief by Interim CEO Amid Restructuring
Luan Li
DATE:  Dec 20 2019
/ SOURCE:  yicai
Dairy Giant Fonterra Replaces China Chief by Interim CEO Amid Restructuring Dairy Giant Fonterra Replaces China Chief by Interim CEO Amid Restructuring

(Yicai Global) Dec. 20 -- New Zealand's Fonterra Co-operative Group, the world's largest dairy exporter, has appointed an interim chief executive for its China business after the former regional president resigned amid reorganization after over three years of service. 

Teh-Han Chow, ingredients business president for China and Southeast Asia, will take up the reins from Christina Zhu till a permanent CEO is appointed, the Auckland-based firm's China unit told Yicai Global yesterday, without disclosing reasons behind the shift. Zhu was the first native Chinese person assigned for the job.

In September, Fonterra announced that it is changing its business structure and reducing global ambitions while expecting to report its worst annual loss. 

Since 2016, Zhu was pushing the firm to diversify its focus from ingredients business to consumer goods and catering. Meanwhile, Fonterra's China business tripled in scale, and its operating profit increased by five times whereas its ingredients market share declined. 

But not every seed planted in the consumer goods field flowered. In August, the company said it plans to sell its stake in Chinese baby food maker Beingmate Baby & Child Food at a huge loss. 

Fonterra's uncertainties are increasing and it has been looking for a buyer to its Chinese farms but the permanent CEO will probably hold onto the firm's leading and competitively priced segments such as cheese in China, independent dairy analyst Song Liang told Yicai Global. Fonterra's Anchor-branded products make up over one-half of China's pizza cheese sector. 

Editor: Tang Shihua, Emmi Laine 

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Keywords:   Milk Products,Fonterra China, Dairy