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Fonterra’s new $40m Chinese dairy farm


Fonterra has bought its third dairy farm in China – for $US40 million.

Charlotte Woodfield
Tue, 19 Jul 2011

Fonterra has bought its third dairy farm in China – for $US40 million.

The company announced today they had signed an agreement with the government of China's Yutian County to develop a new dairy farm in Yutian County, Hebei Province.

Fonterra China president Philip Turner said the demand for milk in China was expected to triple over the next ten years, with much of the demand for liquid and fresh milk products.

The new 40-hectare farm is expected to increase Fonterra’s overall milk production in China to around 90 million litres or 360 million cups of fresh milk every year.

Mr Turner said the ability to grow high-quality local milk production was key to Fonterra’s future in China.

The company’s first farm was established in Hangu 2007. The second farm, also in Yutian County, is still being constructed.

The new free stall dairy farm will employ about 100 local staff, and house around 3,200 milking cows that are expected to produce around 28 million litres of milk per year.

Farm construction will start in November 2011 and is expected to be completed by late 2012.  

Other New Zealand companies making further inroads into China include technology company Rakon, who opened a new $US35 million facility in western China earlier this week, and electronics manufacturer Tait Radio Communications, who plan to set up a bigger operation facility in Beijing.

Charlotte Woodfield
Tue, 19 Jul 2011
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Fonterra’s new $40m Chinese dairy farm
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