New Zealand dairy giant Fonterra has opened an innovation centre in Shanghai that it said will aid the development of “unique” dairy products for the China market.

The facility, the company said today (21 May), will focus on developing “innovative” dairy products and “premium” ingredients that designed to meet the needs of local consumers and Chinese food manufacturers.

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Fonterra CEO Theo Spierings said innovation “underpins” its entire global strategy and is “critical” to the integrated milk business being built in China.

“Demand for dairy nutrition is expected to double by 2020 and the way people consume dairy will change. The opening of the state-of-the-art Shanghai innovation centre will help us build and grow beyond our current product and ingredient offerings and better meet the needs of local Chinese consumers and customers,” Spierings said.

“China is a significant priority in Fonterra’s global strategy and our innovation centre will help us develop unique products and formats that suit the needs of the local population.”

Fonterra China president Phillip Turner added that the facility will also allow the company to “work more closely” with major customers and the foodservice industry.

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“As well as focusing on developing new products and ingredients, the centre will also carry out a number of product training courses for major customers, primarily focused on the Anchor dairy product line. Fonterra advisory chefs will help deepen customers’ technical knowledge and develop innovative recipes to meet customers and consumers’ needs.”

Turner added the centre will employ local staff, who will be trained in product formulation, product production, operating procedures and food safety systems.

The news follows Fonterra’s recent announcement that it will invest in two large-scale dairy farms in Hebei Province, North East China.

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