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Dairy giant Fonterra has unveiled plans to open its sixth application centre in China, located in Wuhan.

Construction has begun at the site, which will add to China’s existing centres in Beijing, Chengdu, Guangzhou, Shanghai and Shenzhen.

Fonterra’s CEO Miles Hurrell said that the co-op's ‘Greater China Foodservice’ business is a key part of its value-add strategy, with the cream products produced at its Waitoa UHT site contributing to this success.

Hurrell said: "Our foodservice whipping cream...is used in approximately 400 million beverages and 260 million cakes in Chinese bakery stores each year and we’ve seen a continued increase in demand since 2014...China’s economic growth has gone hand in hand with increasing demand for our high-quality dairy ingredients and growth of our foodservice business in China."

The co-op's application centres play a pivotal role in driving innovation and tailoring its foodservice offerings to the tastes, culture and trends of the area in which they’re located. The centres include different spaces and equipment to enable researchers and chefs to test and develop new products, often in collaboration with customers.

Hurrell continued: “The addition of a new application centre in China signals the continued growth we expect to see from our ‘Greater China Foodservice’ business, and this will likely lead to further growth in demand for our foodservice cream products, which we are well set up to cater for".

Fonterra’s CEO of Greater China, Teh-han Chow, added how the quality products, coupled with local expertise and the application centres, give Fonterra a competitive edge in China.

Chow concluded: “While we already have a strong foodservice business in China, we’re looking to continue to grow. By working closely with customers to create product applications that help their businesses to thrive, we can all benefit from the opportunities the China market presents.”

#Fonterra #China