Fonterra will spend $42 million to set up a second dairy farm in China, as part of plans to meet Beijing's growing demand for dairy with locally produced milk.The dairy giant today signed a formal agreement with the Government of Yutian County of China in
Fonterra will spend $42 million to set up a second dairy farm in China, as part of plans to meet Beijing’s growing demand for dairy with locally produced milk.
The dairy giant today signed a formal agreement with the Government of Yutian County of China in Beijing that will see it develop a new Fonterra farm in Yutian County, Tangshan City – halfway between Beijing and Fonterra’s existing farm in Hangu, also in Tangshan City.
Tangshan Fonterra Farm has doubled to 6000 cows since set up in 2007 and is producing about 25 million litres of milk annually.
Construction of the 42-hectare farm will take a year and the new herd of about 300 milking cows, imported from New Zealand, is expected to start milking next November.
The set up and management of Fonterra Yutian Farm would be similar to Fonterra’s first pilot farm in Hangu and would employ about 100 locals, most off whom will live onsite, Fonterra said in a statement.
Fonterra chief executive Andrew Ferrier said Fonterra was committed to developing and investing in China’s dairy industry over the long term.
“The fast-growing demand for dairy in China will be met by locally produced milk and we want to be working alongside the local dairy industry to help meet this demand,” he said.
“Today’s agreement further strengthens Fonterra’s capacity to deliver a secure and sustainable supply of fresh dairy products for Chinese customers and consumers.”
