23 Dec 2013

Westland to benefit from Chinese formula market changes

8:17 am on 23 December 2013

With China signalling changes that will significantly reduce the number of infant formula brands and companies allowed to participate in its domestic market the future of some New Zealand exporters is in doubt.

But Westland Milk chief executive Rod Quin believes the pending restrictions will be good news for Westland and the company's well placed to capitalise on the pending consolidation of the infant milk formula market in China.

He says the Chinese government has signalled for some time that it wants to consolidate and get more control of the supply chain.

Mr Quin says it puts companies like Westland in a strong position because it effectively owns its milk supply and the integrity of the supply chain right through either to the brand owner in China or a trusted customer in China.

He says the changes will enhance what Westland has to offer.