Dairy - the new cream of choice in China


For chefs across China, it’s out with the old mock cream and in with the UHT cream as Fonterra ups capacity to meet growing demand.

UHT cream, one of Anchor Food Professionals top selling products, is fast becoming the cream of choice for chefs in China and other parts of the world as they look for a product that has the freshness of pure dairy, won’t over whip and holds its shape for longer.

Fonterra has recently completed a new one litre UHT line at its Waitoa site. However, with continued growth, the Co-operative has already begun construction on a second line which will produce an additional 45 million litres each year for consumers across Asia, the Middle East and the Caribbean.

Fonterra Director Global Foodservice, Grant Watson says it’s an exciting time for Fonterra as more people – particularly in China ­– dine out on Western style cuisines.

“People can taste freshness, and that’s what people are developing a preference for, particularly in China where dairy is really starting to take off. What our customers experience when they buy our products is a taste of pure New Zealand dairy – grass-fed and nutritious.” 

Fonterra grew its combined consumer and foodservice volumes in Greater China by 48 per cent in FY16, a figure Mr Watson says makes Fonterra an industry leader.

“Our global foodservice business is growing at three times the rate of the rest of the global foodservice industry, which is testament to the popularity of New Zealand dairy in some of our biggest markets,” Mr Watson says.

Fonterra Chief Operating Officer Global Operations Robert Spurway says the two new lines will more than triple the site’s capacity of one litre UHT cream.

“Once we’ve installed both lines are installed in August, we will be able to produce more than 120 million one litre packs per annum – a clear demonstration of our value add strategy.

“Decisions around these expansions are based on demand for the product. So it’s a reflection of the great work our foodservice team are doing in the markets, as well as our teams at our sites to support one of the fastest growing and highest returning parts of the business.”

The total cost of the expansion is $35 million and creates 26 new jobs, something Mr Spurway says is good news for the region.

“We’re always proud of the part we play in communities across the country. This expansion will not only generate energy and vibrancy within the Waitoa community, it will also help to bolster the local and regional economy by bringing new employment and, ultimately, stronger returns for our farmers,” says Mr Spurway.