Fonterra announces opening of its second farming hub in China's Shanxi Province; hub will comprise of five 3,000-cow farms, is expected to be in production in H2 2014

Nevin Barich

September 23, 2013 (Datamonitor FoodWire) – Fonterra Co-operative Group Limited, a manufacturer and seller of diary ingredients, has announced the opening of its second farming hub at Ying County, Shanxi Province in China.

The Ying County hub will comprise five 3000-cow farms. It is expected to be in production in the second half of 2014 and is the next step in the company's strategy to produce one billion litres of milk in China by 2020.

Fonterra President of Fonterra Greater China and India, Kelvin Wickham, said: "This is a key part of our strategy to become a more integrated dairy business in China and to contribute to the growth and development of the local Chinese dairy industry. Having secured the right location in the Shanxi province we are now able to approach potential strategic partners."

"Ying County provides an ideal environment for us to expand our farming operations due to its new agricultural zone, proximity to customers and the high quality supply of animal feed available in surrounding areas."

Fonterra will employ more than 500 people in Ying County, of which around three quarters will be local employees, the company said.

When fully operational, Fonterra's two hubs will together produce up to 300 million litres of milk per year, the company added.

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