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Bold dairy focus on China

and Reuters

Fonterra is shedding its coyness about returning to dairy manufacturing in China after a disastrous debut, saying it is relaunching two premium brands there and ultimately wants to make them in China.

New Zealand's biggest company has also revealed that China is "a registered focus area" on its books, commanding its own profit-and- loss accounts, and separate from its major Asia-Middle East business division.

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Managing director trade and operations Gary Romano said two of Fonterra's flagship export brands, rolex fake Anlene and Anmum, were to be relaunched in China. The wholemilk powder products would be made in New Zealand but making them in China was "ultimately what we want to do".

Fonterra had to write off a $200 million partnership investment in China's SanLu dairy processing company last year after it was involved in an infant milk formula melamine poisoning crisis, which caused the 2008 deaths of several infants and left thousands sick with kidney problems.

Fonterra's move comes as China warned yesterday of a continued "grim" food safety outlook following the re- emergence of a tainted milk scandal and called for strengthened
embroidered patches efforts nationwide to contain the threat.

State media reports said authorities were hunting for nearly 100 tonnes of tainted milk powder that should have been destroyed earlier.

The powder has found its way back on to the market, casting new doubts on China's scandal-prone food industry more than a year after the authorities had declared the 2008 milk threat over.


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