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LONDON, July 17 (Reuters) - New Zealand's Fonterra - the world's largest dairy producer - will cut somemilk powder prices in China, a newspaper reported on Wednesday,joining a growing list of firms responding to Beijing'sinvestigation into the sector.
A number of international milk powder producers have cutprices in the country after China's top economic planning agencysaid earlier this month it was investigating producers forpossible price-fixing and anti-competitive behaviour.
Auckland-based Fonterra will reduce prices by up to ninepercent for its Anmum-branded range of formulated milk productsin China, the New Zealand Herald reported.
Fonterra managing director for China and India, KelvinWickham, said in an emailed statement to the paper that the movewas aimed "to better meet consumer needs in light of recentindustry-wide price revisions".
Fonterra's European spokesman was unable to confirm theprice reduction, and Chinese and global spokesmen for thecompany were not immediately available.
China is one of Fonterra's largest export markets.
Abbott Laboratories, French food giant Danone SA, Nestle SA, Mead Johnson Nutrition Co and Hong Kong-listed Biostime International Holdings Ltd have already cut milk powder prices in China.
Drug pricing in China has also come under severe scrutiny,with China's top regulators targeting British drugmakerGlaxoSmithKline PLC, and announcing a crackdown onpricing in the wider pharmaceutical market.
Demand for international milk powder spiked in China afterparents turned away from Chinese products in 2008 when infantformula tainted with the industrial compound melamine killed atleast six babies and made thousands sick with kidney stones.
Last year Fonterra was the fourth largest milk powderproducer in China in terms of market share, according to datafrom Euromonitor, and has plans to build a milk-processing plantin China over the next few years.
