Fonterra plans to build four-to-six farming hubs in China by 2020 that will produce 1 billion liters of milk to meet rising demand for dairy products

Nevin Barich

Nevin Barich

Jun 16, 2014 – China Daily

June 16, 2014 () – A woman uses her mobile phone in front of an advertisement for Fonterra in Jinan, East China's Shandong province, August 12, 2013. [Photo/IC]

New Zealand's Fonterra Co-operative Group Ltd, the world's largest dairy exporter, plans to build four to six farming hubs in China by 2020 that will produce 1 billion liters of milk to meet rising demand for dairy products.

The dairy producer has five farms at its first hub in Hebei province and is building a second hub of five farms in Shanxi province.

Fonterra eyes China UHT milk plant in 2014/15

Fonterra challenged in China's milk powder marketHenk Bles, managing director of international farming ventures at Fonterra, said that the location of farms is critical, because these facilities must meet standards for soil and water quality, climatic conditions and sufficient feed for cows.

"We have a time frame for the next six or seven years. Most importantly, when we decide to do it, we want to do it in a proper way," Bles said during the 12th World Dairy Expo and Summit held in Xi'an, which started on Friday.

Carl Worker, New Zealand's ambassador in China, said that New Zealand's dairy exports to China grew 55 percent in 2013. Last year, out of the country's total exports worth NZ $48 billion ($41.5 billion), 30 percent were dairy products, and one-third of the dairy exports went to China.

New Zealand is the world's largest dairy exporter. Most milk is consumed domestically, with only 7 to 8 percent being exported. New Zealand accounts for one-third of global exports of milk.

Worker said that Chinese consumption patterns have a major impact on production structures in New Zealand. Dairy producers in New Zealand have discovered that there is a great demand for long-life ultra-high temperature milk in China, so New Zealand dairies have increased processing of UHT milk for the Chinese market.

Over time, Worker said, New Zealand dairies are also likely to make less butter and cheese, as these items aren't that popular in China.

(c) 2014 China Daily Information Company. All Rights Reserved. Provided by SyndiGate Media Inc. (

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.


About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025 795

+1 (310) 558 0008
+1 (310) 558 0080 (FAX)

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.