(Yicai Global) May 9 -- A number of multinational dairy firms have expressed confidence in the Chinese market despite the new waves of Covid-19 that have brought many cities to a standstill for over a month, including Shanghai where many of them have their China base, impacting sales.

China is a very important market for New Zealand dairy giant Fonterra, accounting for one third of revenue, Zhou Dehan, chief executive officer of Fonterra China, told Yicai Global. China’s economy has maintained robust growth during the pandemic, showing its strong resilience in the face of difficulties.

The company has confidence in the Chinese market, which is why it chooses to continue to invest, Zhou said. The Auckland-based firm will hike investment in raw materials, catering services and consumer goods in the country, he added.

Fonterra's revenue from the China market jumped 13 percent in the six months ended Jan. 31 at NZD3.5 billion (USD2.2 billion), according to its financial report for the first half of the fiscal year released in March. Overall revenue jumped 9 percent to NZD10.8 billion (USD6.9 billion).

Dutch infant formula maker Royal FrieslandCampina has been given strong support by the Shanghai municipal government to ensure its goods reach consumers during lockdown, the Amersfoort, Netherlands-based company said on May 7. The firm was granted two transport passes earlier this month on the same day that it applied to allow smooth deliveries.

The city’s fight against Covid should end soon, it said. After which, sales should rebound, he added. The firm plans to introduce more new products into the Chinese market.

Last year profit from FrieslandCampina’s China sales grew by double digits, according to its financial report for the fiscal year 2021. Both cross-border e-commerce and new businesses expanded more than 20 percent and its dairy business increased over 30 percent.

Editor: Kim Taylor