Fonterra APAC CEO on Interim Results, Outlook

The video discusses the challenges faced by the dairy industry, including inflation, geopolitical tensions, and COVID-19 impacts. Despite these challenges, there is consistent demand for nutritious dairy products. The company has adapted by finding new markets and focusing on strategic goals. Geopolitical issues, such as the war in Ukraine, have affected supply chains, while strategic decisions have led to exiting certain markets like India. The company continues to innovate, especially in the Chinese market, to maintain demand and explore new opportunities.

What has been a significant challenge for the dairy industry in the first half of the year?

• Surplus milk collections

• Stable geopolitical conditions

• Increased milk prices and inflation

• Decreased demand for dairy products

How has the war in Ukraine affected the dairy business?

• It has led to increased oil prices and inflationary pressures

• It has improved the supply chain efficiency

• It has reduced the cost of grain

• It has decreased the demand for dairy products

What is the company's current stance on its operations in Russia?

• They have decided to expand their operations

• They have suspended supply and are considering long-term strategies

• They have increased their supply to Russia

• They have completely shut down their operations

Why did the company decide to shut down its joint venture in India?

• India had the highest milk prices

• The company wanted to focus on expanding in India

• The Indian market had no demand for dairy

• India was no longer strategically important

What has been a major challenge for the food service sector in China?

• High input costs

• Excessive supply of dairy products

• Stable market conditions

• Lack of demand for dairy products

How has the company managed to maintain operations during the COVID-19 pandemic?

• Through good planning and agility

• By increasing the workforce

• By reducing production

• By closing down factories

What creative strategy did the company use to boost demand in China?

• Focusing solely on local markets

• Reducing prices significantly

• Encouraging the use of mozzarella on dumplings

• Introducing new dairy products