Fonterra expects 300-percent growth in dairy exports to China

Fonterra forecast its dairy exports to China to treble this year due to last year's melamine scandal.

Consumers in China have lost faith in domestic products following the melamine contamination incident, according to Henry van der Heyden, Chairman of Fonterra.

Based on March's price of US$2,235 per tonne, this indicates Fonterra's milk powder turnover could be US$357.6 million.

The export boost could last about two to three years, said van der Heyden.

He also said he expected the inventory levels of Fonterra to be at normal seasonal levels by July 2009, easing the financial burden caused by the need to rent extra storage space to keep excess stock.