In the face of all those challenges, ranging from the volatile milk price, the weak demand and surplus supply around the world, the milk contamination scandal to environmental problems, an adapted strategy needs to be modified on the basis of the existing one.
A plan, first of all, should be drawn up to adapt the changing present global situation in dairy industry; and budget, as a key element in the process of planning, sets clear goals as well as allocates resources to where they could be used efficiently.
1.
In terms of setting goals, Fonterra would focus on targeted markets where it could bring future benefits to it.
The main dairy export markets of Fonterra was USA and EU several years ago, but during recent years, China, OPEC members and other Asian countries are becoming Fonterra’s major exporters. Although the global demand is relatively weak nowadays, but the dairy products market would still be prosperous in the future as the growing population in those countries. Therefore, what Fonterra could do is to primarily export its dairy products to those targeted countries, while at the meantime, to meet the needs …show more content…
Since the 2008 melamine crises happened in China, a couple of discontinuous contamination incidents occurred as follows, which trigger an anxiety of purchasing Fonterra’s dairy products or to a large scale, of importing New Zealand’s dairy products. Therefore, Fonterra needs to have a strong supervision system in every department related to production, especially the factory where all the dairy products produced. Take whole milk power for example, all the machines used during the process of producing it should be strictly inspected on a regular basis to avoid the contamination incident happened again; at the meantime, after each batch of milk powder is produced, samples should be selected randomly and sent to the technical lab to test whether they contain any toxic
A plan, first of all, should be drawn up to adapt the changing present global situation in dairy industry; and budget, as a key element in the process of planning, sets clear goals as well as allocates resources to where they could be used efficiently.
1.
In terms of setting goals, Fonterra would focus on targeted markets where it could bring future benefits to it.
The main dairy export markets of Fonterra was USA and EU several years ago, but during recent years, China, OPEC members and other Asian countries are becoming Fonterra’s major exporters. Although the global demand is relatively weak nowadays, but the dairy products market would still be prosperous in the future as the growing population in those countries. Therefore, what Fonterra could do is to primarily export its dairy products to those targeted countries, while at the meantime, to meet the needs …show more content…
Since the 2008 melamine crises happened in China, a couple of discontinuous contamination incidents occurred as follows, which trigger an anxiety of purchasing Fonterra’s dairy products or to a large scale, of importing New Zealand’s dairy products. Therefore, Fonterra needs to have a strong supervision system in every department related to production, especially the factory where all the dairy products produced. Take whole milk power for example, all the machines used during the process of producing it should be strictly inspected on a regular basis to avoid the contamination incident happened again; at the meantime, after each batch of milk powder is produced, samples should be selected randomly and sent to the technical lab to test whether they contain any toxic