Fonterra is aiming to secure local milk supplies in China to supply a growing market

Fonterra is aiming to secure local milk supplies in China to supply a growing market

Fonterra, the world's largest dairy exporter, is studying plans to build a third dairy farm in China.

The New Zealand dairy giant said today (26 October) that it is working on plans for another farm in Yutian County in the city of Tangshan in China's north-eastern Hebei province.

"We have signed a letter of intent agreement with Yutian County to continue the due diligence process on a third potential farm site," a spokesperson told just-food. "There are still a lot steps to work through in the negotiation process but we are pleased with the progress to date."

Last week, Fonterra announced plans to build its second dairy farm in China. The farm, which will produce milk in November next year, is also in Yutian County. Fonterra already has a farm in Hangu in Tangshan.