Chinese investors plan to import more of New Zealand’s dairy products

World Today

Food safety concerns have plagued China in recent years, among them baby formula scares. That’s why the country’s demand for imported dairy products has been surging.

And most of them come from New Zealand, which has struggled to meet demand.

CCTV’s Owen Poland reports from South Island.

Chinese investors plan to import more of New Zealand\'s dairy products

Food safety concerns have plagued China in recent years, among them baby formula scares. That's why the country's demand for imported dairy products has been surging. And most of them come from New Zealand, which has struggled to meet demand. CCTV's Owen Poland reports from South Island.

China’s appetite for New Zealand dairy products like butter, cheese, and baby formula has grown rapidly in recent years and many Chinese companies have invested heavily in local farms and factories to secure long term supplies.

But while New Zealand is world-famous for the quality of its cow’s milk,  products made from sheep’s milk have also attracted Chinese interest.

Chinese investment in sheep’s milk is a welcome economic boost for the Southland region at a time when other commodity prices are falling. Other Chinese companies have also invested heavily in the South Island, with more Chinese investment predicted as New Zealand farm values slump.

New Zealand milks five million dairy cows but only 25,000 sheep, and sheep farmer Keith Neylon’s vision is to boost that number to ten million milking sheep. It’s hoped that China’s long term investment in New Zealand’s dairy industry will benefit both countries.