Fonterra deepens commitment to China with innovation, strategic investment

New Zealand's dairy giant Fonterra is reaffirming its commitment to the Chinese market, emphasizing the nation's critical role in its global growth and innovation strategy.

"China's economic growth has gone hand in hand with an increasing demand for our high-quality dairy ingredients and the growth of our Foodservice business in China," Fonterra's CEO of Greater China and President of Global Foodservice, Teh-han Chow, told Xinhua on Tuesday.

Chow noted that over the past two decades, the Chinese dairy industry has matured into a world-class sector, and Fonterra is proud to have contributed to this progress through strong partnerships in nutrition and innovation.

He emphasized that strong government ties and the "gold standard" Free Trade Agreement (FTA), which made New Zealand dairy imports tariff-free, have been crucial to Fonterra's success in China.

Fonterra's growth has benefited from China's strong business environment and the FTA, which has made the company a key player in China's dairy supply chain, Chow told Xinhua.

Chow reaffirmed Fonterra's confidence in delivering quality, innovative, and sustainable dairy products in China and its ongoing investment in local innovation.

Looking to the future, he emphasized Fonterra's long-standing presence and ongoing investment in China, highlighting its nearly 50 years of growth in the country, crediting its success to high-quality products and strong bilateral ties.

Chow noted that locally driven innovation is central to Fonterra's strategy in China, with six application centers, including the newest in Wuhan in central China demonstrating the co-operative's commitment to meeting local needs and expanding its presence. ■