Our News

09 March 2018
Collaboration between Milk New Zealand Dairy and Alibaba delivers fresh New Zealand produced milk to Chinese consumers

Seventy-two hours after it was produced in New Zealand, fresh milk is on the shelves of 18 Alibaba’s Hema Fresh supermarkets in Shanghai.
The initiative is one outcome of a company, Theland New Cloud, formed in 2015 as a subsidiary of Hunan Dakang and minority shareholders. The Alibaba Group and its funder’s capital venture company (57%) became shareholders of the company in December 2017. Hunan Dakang remains a shareholder with 33% and minority shareholders with 10%.

Terry Lee, Managing Director of Milk New Zealand Dairy, now a subsidiary of Theland New Cloud, said the new company was formed to source and export quality New Zealand produced food products to China.

“The Hema Fresh supermarkets are an exciting initiative, combining internet and technology powered shopping. Everything happens through a mobile app – from ordering for home delivery, to instore product research, even payments. Currently Theland Farm Fresh Milk is available in 18 Hema Fresh supermarkets in Shanghai, the QR code on the packaging giving consumers insight to where and how the milk is produced,” Terry Lee said.

Theland Farm Fresh milk on display at one of Hema Fresh’s Shanghai supermarkets

 

“Food quality and safety is of paramount importance to Chinese consumers, and New Zealand is recognised as a country which has some of the highest food safety standards and natural resources in the world.

“Theland Farm Fresh Milk is New Zealand made fresh milk produced from pasture farmed cows which graze on the Theland Tahi Farm Group’s and other farms. It is processed by New Zealand milk processor, Green Valley Dairy, bottled in one litre bottles and airfreighted to China – arriving at Hema Fresh supermarkets 72 hours after it left the farm.

“Our milk will be on display alongside milk produced by a Kiwi cooperative from Chinese farms – currently Theland Farm Fresh Milk is the only fresh milk in Alibaba’s Hema Fresh stores which has been produced in New Zealand.”

The launch of the new fresh milk product follows Milk New Zealand’s collaboration with Alibaba Group’s business-to-consumer Tmall platform in September 2017. That initiative promoted Theland Farm Fresh Milk to hundreds of thousands of Chinese consumers via Alibaba’s ‘Super Members’ channel which has around 15 million members in Yangtze River Delta.

Terry Lee said the new initiative “extends the reach of premium New Zealand grown and processed fresh milk into the hands of Chinese consumers giving them personal insight to the standards of animal welfare and production behind the product.

“This experience enhances their appreciation of New Zealand and will, I believe, add to Chinese consumers’ demand for more food products grown and produced in this country. Opening a new online and offline channel, which connects millions of Chinese consumers with New Zealand food growers, is one of the goals of Theland New Cloud and Milk New Zealand Dairy.”

Terry Lee said the company is currently in talks with New Zealand and Australian food producers about the potential to partner and grow their exports to China.

“Becoming a part of Alibaba means our growth in New Zealand and Australia will increase rapidly. We want to foster better collaborations and opportunities with New Zealand and Australian producers and attract suitably experienced people to join our team.”

Currently between 6.5 and 10 tonnes of Theland Farm Fresh Milk is exported to China each week. A total of 160 tonne has been exported since September 2017.

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