7 August 2013
Conclusion of NDRC investigation
Fonterra Co-operative Group today confirmed it has been issued with an administrative fine of approximately NZD 900,000
(RMB 4.47 million) following the conclusion of the China National Development and Reform Commission (NDRC) review of
pricing practices in the mainland of China for consumer dairy products.
“Fonterra has been co-operating fully and openly with the NDRC throughout this process. We accept the NDRC’s findings
and we believe the investigation leaves us with a much clearer understanding of expectations around implementing pricing
policies which is useful as we progress our future business plans,” said Kelvin Wickham, President of Fonterra Greater
China and India.
“We understand that a number of companies in the dairy industry were fined, with Fonterra’s fine being in the lowest
As a consequence of the investigation Fonterra will provide additional training to its sales teams and will review
distributor contracts to ensure clarity around how pricing policies are implemented through the distribution chain.
“We are committed to providing high quality, premium imported products to Chinese consumers and we are also committed to
being an integral part of and long-term partner to the Chinese dairy industry. Therefore we are taking these steps to
ensure we fully comply with the NDRC’s expectations of us,” Mr Wickham said.
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