July 25, 2011

Fonterra invests in China dairy farm

In order to improve the quality of fresh milk supply to Chinese customers after numerous milk controversies, New Zealand milk giant Fonterra Co-operative Group Ltd will put in CNY260 million (US$40.3 million) in its third dairy farm in China.

An agreement had been signed between the Yutian county government of North China's Hebei province and Fonterra to construct a 40-hectare farm which is forecast to raise Fonterra's milk output in China to approximately 90 million litres.

The new farm will be constructed in November this year and expected to be completed by late 2012. It will house about 3,200 milking cows.