The $40m investment is Fonterra’s third dairy farm in China and is the next step in its strategy to build a high quality, sustainable fresh milk supply for customers in China.
The 40-hectare farm is expected to increase Fonterra’s overall milk production in China to around 90m litres of fresh milk every year.
Philip Turner, president of Fonterra China, said: “The demand for milk in China is expected to triple over the next 10 years, and much of this demand is for liquid and fresh milk products. Our future in China is underpinned by our ability to grow high quality local milk production for our customers and by playing a strong role in the development of the local dairy industry.”
Peter Moore, chief operating officer of Fonterra International Farming Ventures, added: “The construction of our second farm in Yutian County is also progressing well. Today’s announcement of our third farm investment agreement is the next step in our plans to build a hub of farms in Hebei Province in the next five years.”
Fonterra will sell milk from the new farm to local and international dairy brands in China.
© FoodBev Media Ltd 2020
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