New Zealand dairy giant Fonterra has announced plans to open two more large-scale dairy farms in China, increasing milk production and completing the groups first “farm hub” in Hebei Procince.
The two additional farms bring the number of Fonterra-owned dairy farms in Hebei to five and, once fully operational, Fonterra expects to produce 150m litres of milk per year in the province. Each farm will produce up to 65m litres of milk a year once fully operational, the dairy giant said.
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Through the development of its own large-scale farms, Fonterra aims to build a “high quality, sustainable fresh local supply” in China. The investment was part of Fonterra’s strategy to build an integrated local milk pool in China, Fonterra Greater China and India president Kelvin Wickham said.
“The demand for dairy in China is expected to double by 2020 and much of this growth will be met from local production. We need to build a safe, sustainable local milk supply to feed this growth.”
Wickham revealed the company plans to create “several” more farming hubs throughout China with the goal of producing 1bn litres of milk by 2020.
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By GlobalData
