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Conclusion of NDRC investigation

Published: Wed 7 Aug 2013 01:35 PM
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 range.”
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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