Sharechat Logo

Fonterra milking Chinese demand, expanding farm operations

Tuesday 2nd February 2010

Text too small?

Fonterra Cooperative Group, the world’s largest exporter of dairy products, is increasing its Chinese production base with an investment in two new dairy farms in the north east of the country.

The dairy cooperative plans to follow-up a pilot farm that’s produced a second generation of China-born heifers with two new farms of a similar size with around 35 hectares of land for 3300 indoor-kept cows. The pilot has a total herd size of 5800 cows, around half of which have been raised from the original imported Friesians.

“The current supply of high quality fresh milk cannot keep up with the demand,” even as the Chinese dairy industry develops quickly, said Philip Turner, managing director for Fonterra China in a statement. “We are looking to help grow a safe, secure and sustainable milk supply in China in order to meet this demand and expand our customer base.”

China expects double digit annual growth in milk demand over the next 10 years.

The Tangshan Fonterra Farm pilot established in Hangu in 2007 has demonstrated that New Zealand standard milk can be produced in China. Target production levels have been reached ahead of schedule, with record levels of milk being produced for China.

Each farm will create employment and training opportunities for 350 people in Hebei Province.

“We are confident that with further investment in good technology, people and high quality genetics, we can replicate this model on further farms,” Turner said. “This will complement our New Zealand milk supply and help us better meet the needs of our key customers, who are increasingly looking for local sourcing capability.”

Fonterra has identified several possible sites for the new farms, and while it will consider partnering on the investment, the co-operative wants to have full management of them.

“It is important that we keep the next two farms in close proximity to Tangshan Fonterra Farm in order to achieve efficiencies in transport, milk supply and Fonterra management,” Turner said.

Due diligence on the possible farm sites is underway, and Fonterra aims to complete the final long-term lease agreement by mid-2010.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Wellington International Airport Ltd (“WIA040”) - Maturity
Devon Funds Morning Note - 18 July 2024
CNU - Commerce Commission releases draft Price Quality decision
Precinct FY24 Annual Results and Webcast Details
Scott Technology appoints new CEO
Synlait FY24 guidance withdrawal
Meridian issues demand response exercise notice to NZAS
July 17th Morning Report
CRP - Korella North Environmental Approval Granted
SCL - Sale of Apple Orchards