Fonterra Eyes Chinese Expansion

Fonterra is considering expanding its dairy processing business in China.

The New Zealand dairy giant said it may acquire 40ha of land in Hubei province on a lease basis for a second farm with 3,000 milking cows.

The company, which has a 35ha dairy farm in Hebei province that produces about 25,000t of milk, also wants to build a third farm in the same province.

Fonterra is looking at a variety of processing applications in the dairy sector including cream, fresh premium milk and yoghurt production.