Westland Milk expects China sales to double in 3 years

Westland Milk Products, New Zealand's second biggest dairy cooperative, expects sales in China to more than double to US$2 million in the next three years as it rides on the demand for imported diary products in the country.

The company established its first overseas presence in Shanghai earlier this month.

China is already the company's single largest market in terms of sales value and the company is shifting toward more value-added products with rising demand for high-end products.

Last year China accounted for 17 percent of Westland's global sales and two thirds of the company's products went to Asia Pacific region.

Currently consumer products such as yogurt powder and butter only make up less than 10 percent of sales in China as the rest, mainly milk powder and protein supplements, are sold to dairy producers.

"Moving away from a commodity producer is a clear vision for the company and China has presented huge potential in terms of demand for higher margin nutritional products," said Gregg Wafelbakker, sales and marketing manager at Westland, at a media briefing in Shanghai today.

Compared with other dairy exporters in New Zealand, Westland's relatively small production capacity makes it easier to shift its focus toward high margin products than other large companies.

Earlier this year, the New Zealand company has gained regulatory approval to export dairy products including infant formula milk powder to China.

The registration process was the latest effort by the Chinese government to further regulate the country's dairy market to ensure qualify and keep out those outdated and under-qualified products.