Fonterra to lower product price amid official probe

Fonterra Cooperative Group Ltd, the world's biggest dairy exporter, will cut prices in China for Anmum supplements for pregnant women amid a government pricing probe of baby formula makers based outside the country.

Fonterra will offer the supplements for 9 percent less in China starting next month, the New Zealand-based company said in an e-mailed statement on Tuesday. The milk processor got about 14 percent of revenue from China in the six months ended Jan 31, according to data compiled by Bloomberg.

The cuts are intended to keep Fonterra's Anmum, which contains beneficial bacteria, folate and iron, competitive after rivals announced price reductions, Maree Wilson, a spokeswoman at the company said by e-mail.