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- Release Date: 07/08/13 15:11
- Summary: GENERAL: FSF: Conclusion of China NDRC investigation
- Price Sensitive: No
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FSF
07/08/2013 13:11
GENERAL
REL: 1311 HRS Fonterra Shareholders' Fund (NS)
GENERAL: FSF: Conclusion of China NDRC investigation
Fonterra Co-operative Group today confirmed it has been issued with an
administrative fine of approximately NZD 900,000 (RMB 4.47 million) following
the conclusion of the China National Development and Reform Commission (NDRC)
review of pricing practices in the mainland of China for consumer dairy
products.
"Fonterra has been co-operating fully and openly with the NDRC throughout
this process. We accept the NDRC's findings and we believe the investigation
leaves us with a much clearer understanding of expectations around
implementing pricing policies which is useful as we progress our future
business plans," said Kelvin Wickham, President of Fonterra Greater China and
India.
"We understand that a number of companies in the dairy industry were fined,
with Fonterra's fine being in the lowest range."
As a consequence of the investigation Fonterra will provide additional
training to its sales teams and will review distributor contracts to ensure
clarity around how pricing policies are implemented through the distribution
chain.
"We are committed to providing high quality, premium imported products to
Chinese consumers and we are also committed to being an integral part of and
long-term partner to the Chinese dairy industry. Therefore we are taking
these steps to ensure we fully comply with the NDRC's expectations of us," Mr
Wickham said.
-ENDS-
End CA:00239386 For:FSF Type:GENERAL Time:2013-08-07 13:11:20
