(Yicai Global) March 9 -- New Zealand dairy giant Theland has suffered a more than CNY80 million (USD11.52 million) loss at its Chinese business after cutting production at farms and plants in the country over the lunar new year holiday due to the Covid-19 outbreak. To ensure supply in China, the firm has cut its losses in a variety of ways from booking cargo space to ramping up online sales.

The company reserved cargo space on airlines to ensure uninterrupted supply during China's national holiday even as many airlines suspended flights to the country amid the outbreak, a Theland executive said in writing to questions from Yicai Global.

Theland's online sales have increased in the face of reduced customer flow at physical outlets. The firm has entered many large e-commerce platforms, including Tmall, JD, Suning, Alibaba's Hema Xiansheng and Shanghai Media Group's CJ Home Shopping, ranking first by dairy products imported to China through Shanghai.

Support from government agencies has helped the company resolve the problem of slow resumption of warehouse logistics during the epidemic prevention and control period. Moreover, preferential taxes, subsidiary and labor support have not only guaranteed Theland's milk supply but also cut its losses, the executive said.

Of the 160-plus staffers at the firm's head office in Shanghai, most have gradually resumed work, and the company allows those who can't go to the office to work remotely.

"Our employees can coordinate and have meetings with colleagues at the office via audio and video conversation, and the overall work efficiency is not bad," said Sheng Wenhao, president of Theland New Cloud.

Regarding the first case of Covid-19 recently confirmed in New Zealand, Theland said the incident has had some impact on its farming operations. To ensure product quality, its 29 farms in New Zealand have adopted a series of control and prevention measures for strict disinfection and regular protection of various links, from herd protection to farm milking and cold chain transportation.

In addition, since the outbreak, the company has donated Theland milk and HawkeSpring water, the firm's star exhibits at the China International Import Expo, to frontline anti-epidemic bodies like Shanghai's medical assistance team in Wuhan and the makeshift Leishenshan Hospital, also in the capital of central Hubei province.

Editor: Peter Thomas