New Zealand-based multinational dairy company Fonterra has cut down the lead-time for UHT milk exported to China by 70%.

This will allow the dairy co-operative to advertise the freshness of its milk in the Asian country, which is its biggest market.

The company stated that it reduced the lead-time for UHT products exported to China from 100 days to just 34 days.

Fonterra chief operating officer global operations Robert Spurway said: “When it comes to dairy, there is no substitute for freshness and this is something Fonterra takes great pride in. We produce some of the purest dairy in the world, from grass-fed cows living on quality pasture and you can taste that quality in our milk.

"Reducing the window between the farm and the breakfast table is about preserving the natural freshness and purity of our milk."

“From a supply chain perspective, reducing the window between the farm and the breakfast table is about preserving the natural freshness and purity of our milk; this is one of Fonterra’s competitive advantages globally.”

The company said that it took less than four months to bring down the lead-time by 70%.

It focused on every aspect of the supply chain, from production, sailing time and schedules to customs clearance in order to bring down the lead time.

Spurway further added: “We’ve put all facets of our supply chain under the microscope to shave off every additional hour.

“Processes that delayed products from leaving our site have been analysed and refined, resulting not only in our UHT reaching port sooner, but also an improvement in our consistency and quality. Waiting time at port has also been minimised, with all production now aligned with shipping schedules between Tauranga and Shanghai.”


Image: Fonterra  reduces lead-time for UHT products exported to China. Photo: Courtesy of Fonterra Co-operative Group.