China demand for New Zealand dairy products has been strong over the last few months as the Asian nation’s bakeries, pizza chains and other food retailers stock up for the country’s biggest festival of the year.
Global dairy commodity prices have climbed nearly 5% since October last year. Demand for foodservice ingredients has been strong over this period leading into Chinese New Year, which this year begins on 29 January.
Justin Dai, Fonterra’s Vice President for Foodservice Greater China, says Chinese New Year typically is a boost for New Zealand dairy exports.
“Every year, our Foodservice products like UHT cream and mozzarella cheese are used in millions of cakes and pizzas during the Chinese New Year festival,” he says.
Dai says the Co-op’s foodservice sales in China are expected to continue to grow rapidly.
“Chinese New Year is all about family gatherings and celebrating with loved ones. Chinese consumers love shopping and dining during this time, which is great for our Foodservice channel.”
Common applications for Fonterra’s dairy are dishes specifically themed for the new year.
“Chinese consumers love red-theme food during this time of year, as red is associated with prosperity and good luck. In addition to traditional dishes, there’s a growing preference for dairy products and Western-style food. Applications like strawberry cream cake for instance are becoming more popular,” Dai says.
The growth in demand has also been driven by restaurants developing new dishes and tasty treats for the new year.
“Producing festive menus for Chinese New Year is a big part of the foodservice industry in China. Every year new dishes and other food products are specifically created for the new year period. For example, pistachio crusted pizzas or salty-flavoured milk tea with cream topping using our cream cheese are on our customers’ festive menu this year.”
Some of these applications are developed at Fonterra’s six applications centres in China.
“There are over 500 cities in China that we’re supplying to, each with unique cuisines, trends and preferences. Our team of chefs at these application centres work closely with customers to co-create applications that cater to the local taste, which is crucial for our Foodservice growth in China,” Dai says.