NZ Dairy Giant Fonterra Launches Dairy Hub in China

Published By : 11 Jun 2014 | Published By : QYRESEARCH

Over the past few months, thousands of dairy cows from Australia and New Zealand continue to be shipped into China. These bovines will form a part of a mega network of dairy farms being set up with the aim of producing a whopping one billion liters of fresh milk annually by 2020. According to reports in the local media, Fonterra has launched a dairy hub in China with 15,000 cows this year. The total expected production from this massive dairy hub in 2014 is 150 million liters of milk, according to the Australian Broadcasting Corporation. Plans for massive expansion at the facility are afoot. 

According to Fonterra’s managing director of international farming, Henk Bles, the company has already undertaken production of another such hub in China. The company intends to produce 150 million liters of fresh milk by 2015 at the new facility being constructed. The hub comprises various clusters, each constituting five farms that will each milk about 3,000 to 3,500 cows. These farms are expected to employ 100 workers each. Currently, Fonterra’s main customers are local manufacturers, to whom it sells the milk at a premium price because of the company’s ability to assure food safety. This has made the dairy hubs an exceptionally profitable business.

He added that there was a massive demand in China for high quality milk, and local manufacturers are willing to pay premium prices to obtain quality-assured milk. 
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