Fonterra is nailing its commercial colours and much of its future to China and emerging markets as it struggles in the face of weak demand and prices.
The co-operative's annual meeting was told yesterday that it has an ambitious target to be number one in the Chinese market, doubling sales to $10 billion by 2020.
Its chief executive Theo Spierings said Fonterra wanted to do more of its trading online, boost its manufacture and sale of dairy ingredients, and wanted to find suitable Chinese partners to use local milk for added value products.
He said China may account for a quarter or more of Fonterra's business, but he did not see the company as being too reliant on one market.
"We are very clear in terms of growth strategy... the growth bill is South East Asia, or driven by China, South East Asia and Latin America," he said.