Skip to Navigation

Amitava Chattopadhyay


Amitava Chattopadhyay
Emerging Market Multinationals - Amitava Chattopadhyay


Can importing heifers allay food safety concerns in China?

China Huishan Dairy Holdings Company is planning an IPO and The Wall Street Journal anticipates the IPO to raise US$1.3 billion. What is interesting about the company is its strategy to diffuse the concerns in Chinese consumers’ mind about food safety which is particularly significant and also particularly strongly so for the dairy industry following melamine tainted milk tragically sickened thousands of Chinese babies and caused the death of many!

China Huishan imports heifers from Australia and grass from the US to feed them with the intent to allay the safety concerns in consumers’ minds. It is an interesting strategy and it would undoubtedly be interesting to see if it works. Logically, clearly, it should not, since imported cows and visibly imported feed is no guarantee that melamine or other substances cannot be added to the milk before it reaches consumers.

The recent recall of dairy products by New Zealand’s Fonterra Cooperative Group Limited and the seizure by Chinese authorities of dairy products from Westland Milk Products also of New Zealand, for abnormal levels of nitrates, might be a bigger cause to undermine the potential value of using imported heifers and feed. True, the heifers are from Australia and the safety issues are for products from New Zealand, but just as consumers from the West don’t discriminate among emerging markets, as we saw in the past when stock markets across emerging markets were hammered through contagion due to weakness in one subset of emerging markets, Chinese consumers’ sentiments towards milk from heifers from “down under,” irrespective of origin, might be tainted by the concerns regarding safety with dairy products from New Zealand.

  Sep 29, 2013 | Musings




THEMES

 
 
 


SHARE

 

Thoughts?

 



Recent Tweets



Fri, 06 Sep @ 04:40 pm

So sad. Pluralism is dead! "Analysis: A moment of reckoning for Indian Americans" https://t.co/2RvdqaoKh9

via Twitter for Android
Fri, 06 Sep @ 05:19 am

This is the problem. Lunatic conservatives twist things that make total sense for political gain, though it's damag… https://t.co/j2rsMuCsQ4

via Twitter for Android
Tue, 03 Sep @ 02:02 pm

Likely lying. Notice he's learnt to comb his hair, finally. Maybe he thinks it makes him look more trustworthy. https://t.co/HFAfypAMCf

via Twitter for Android
Sun, 01 Sep @ 01:22 am

RT @PeoplesMomentum: When we stand together, we are always stronger. ✊🏽✊🏾✊🏻 https://t.co/xmYf53ruqQ

via Twitter for Android
Sun, 01 Sep @ 01:18 am

RT @golfmangosierra: We're duplicating trumpland here. Its nasty and horrifying. Three short years from 2016. Thanks Cameron. https://t.co/…

via Twitter for Android
Sat, 24 Aug @ 05:35 pm

So lame. Own up. -Prince Andrew: I did not suspect Epstein's behaviour"https://t.co/db5W3CcFAu

via Twitter for Android

  Close About Papers Cases Books Teaching Musings Media Gallery Ask Amitava