Joint Venture Essay

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Fonterra and its China strategy Business Proposal Fonterra background Fonterra Co-operative Group Limited is one of the largest Dairy exporters in the world. The main company is located in New Zealand owned by 10,500 farmers (96% NZ dairy farmers). Furthermore, there are over 16,000 employees work across from advising farmers on sustainable farming and milk production. 95% of dairy products which is made in New Zealand are exported by Fonterra to over 140 countries around the world. Fonterra produce over 14 billion litres of milk every year. Until now, the asset of Fonterra is NZ$ 14.1 billion. In addition, Fonterra has a huge turnover which is NZ$ 16 billion, and it makes up 20% of New Zealand annual export earnings. Currently, Fonterra has over 15,000 employees and over 10,000 shareholders. Finally, Fonterra is a famous company so that it has prestige in the business. Therefore, cooperate with a company like that can make us feel comfortable to work with. Vinamilk background Vinamilk dairy co. ltd is the company which main business is import the dairy products in to China. The legal structure of Vinamilk is Board of Directors, shareholder’s council and milk commissioner. In Vinamilk, we have 1 board of directors which was chosen by the council of administrators. Also, the shareholder’s council is responsibility to look after the shareholders of Vinamilk, help the shareholders know clearly what the company are doing and how can the company make profits. At last, The Milk Commissioner is appointed by the Shareholders' Council to mediate any disputes between shareholders and Vimamilk. Vinamilk is the company import the dairy products in to China, but Vinamilk believe that import the dairy product in to China will make the cost of transportation rise. In addition, China has bad reputation with fake products (in this case is dairy products) so that import the

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