SanLu link threatens Kiwi image

New Zealand's clean, green and friendly image in China may be under threat in the wake of the melamine scandal if communications are not well managed, a just-released report says.

Very few Chinese consumers are aware of the connection between New Zealand and SanLu - the Chinese dairy company 43 per cent owned by Fonterra that was at the heart of the scandal, it said.

Tainted Brands - a report from China-based media research company All Media Count - surveyed 900 Chinese consumers in several major cities and some provincial areas between September 22 and September 26. Only 3 per cent of respondents felt worse about New Zealand because of the melamine scandal.

But many were not aware that a New Zealand company is SanLu's partner.

"When informed of this fact ... many people experience a negative shift in feelings toward the country," the report says.

"Any future disclosure about the connection between SanLu and New Zealand could, if not well managed, further tarnish the image of the country."

All Media Count was set up around a year ago by New Zealand expatriate Mike Underhill. He said that Fonterra's recent $8.4 million donation to set up a rural healthcare project was a good start in terms of managing both Fonterra and New Zealand's image in China.

"That's the sort of thing that's proactive and good and needs to be publicised," Mr Underhill said. "What you want to do is have people learn about New Zealand's involvement in a positive way rather than a negative way."

Two major dairy firms, Inner Mongolia Yili Industrial Group and Bright Dairy Group, estimated yesterday they would post third-quarter net losses because of China's scandal over contaminated milk.

In statements to the Shanghai Stock Exchange, the companies did not give specific figures. They are due to make full third-quarter earnings reports late this month.

- © Fairfax NZ News