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Fonterra sees Chinese demand for dairy increasing
China is again demanding more dairy from New Zealand. This is what dairy giant Fonterra has noted. Two dairy products in particular are particularly popular. The dairy giant is working hard to expand the distribution of these products to more Chinese cities.
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Cheese and cream are often consumed differently in China than in Europe. For example, cheese is used in tea and is also very popular as a lollipop, albeit baked.
Earlier on elevated Fonterra has already revised its milk price forecast for the current season, after a long series of cuts. Reports about the strongly improving food business and consumer market provide further support for the improving sentiment.
In concrete terms, Fonterra wants to expand the distribution of its cream and cheese production (and combinations thereof) to a series of smaller metropolises ('Tier 2 & Tier 3' cities, as they are called in marketing jargon). Not all Fonterra factories can produce the above products, but the factory in Darfield, among others, is well suited to meeting Chinese demand.