KEY POINTS:
Fonterra, its reputation bruised by its part in the recent Chinese contaminated milk scandal, says it is donating $5 million to a charity aimed at helping China's children and mothers.
The money - $US5 million ($NZ8.3m) will be paid over the next five years to the "Soong Ching Ling Foundation", and used to provide medical care and advice to pregnant women and new mothers across rural China.
"The goal is to improve the health of women and children, thereby promoting social progress and development," said the company in a news release.
Fonterra's 43 per cent-owned Chinese dairy company San Lu is one of 22 firms caught up in a scandal in which the industrial chemical melamine was added to watered-down milk to boost protein levels. At least four babies died and tens of thousands have fallen ill.
No mention of the contamination scandal is made in the announcement of the charity, which will operate under the umbrella of the Soong Ching Ling Foundation' "Project of Safety of Mothers and Infants"
The China market has so far been worth more than $400m a year to Fonterra, but its reputation has taken a blow over the contaminated milk scandal. It has been criticised for not doing enough when it first became aware of the melamine in the milk.
This new charity project will build maternal and infant community hubs in China'rural and underdeveloped communities, providing them with tools and resources to support prenatal and postnatal care, and also provide information and education to pregnant women and mothers, helping to ensure healthy pregnancies and babies. This will allow families to build a strong future and give infants the brightest future.
"The project will include exchange and teaching programmes to help give local health workers, obstetrical and paediatric doctors, and nurses in rural areas new opportunities to learn latest healthcare best practices. The project will encompass rural and underdeveloped areas in China."
Fonterra chief executive Andrew Ferrier is currently in China to sign a deal with the charity.
"Fonterra has a 20-year history in China and is strongly committed to China. We are part of Chinese society and want to contribute to the development of the rural areas of China via our effort," said Ferrier in a release.
It is the first time Fonterra has got involved in any charity work in China. New Zealand's biggest company, it has an annual turnover of NZ$19.5 billion.
