What has Fonterra learned?

What would Fonterra have done differently before investing in China if the company could have foreseen the melamine poisoning which killed at least six babies, poisoned tens of thousands of others and has led to the chair of Sanlu, Tian Wenhua,  being sentenced to life imprisonment  and two men who supplied melamine being sentenced to death?

The answer to that hypothetical question probably doesn’t matter.

But what Fonterra has learned from the experience does matter  if the company has any thoughts of investing in China in the future.

It’s a vast country with a very large population which means there are big opportunities for investment, but the Sanlu experience shows there are also huge risks.

3 Responses to What has Fonterra learned?

  1. macdoctor01 says:

    but the Sanlu experience shows there are also huge risks.

    And the risk are magnified ten-fold when you are as naive as Fonterra. On the off-chance that someone from Fonterra is sensible enough to read your blog, HP, I offer up this article as a start in their quest to “get a clue” in the Chinese market.

  2. homepaddock says:

    MacD – very instructive, thanks.

  3. barnsleybill says:

    There are business people in China and there are honest people in China. But there are no honest business people in China.

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