Introduction of Sixth Application Centre in Wuhan

Dairy giant Fonterra has announced its plans to open its sixth application centre in China, located in Wuhan. This new centre will complement Fonterra’s existing facilities in Beijing, Chengdu, Guangzhou, Shanghai, and Shenzhen, underscoring the company’s commitment to the Chinese market.

Driving Innovation and Tailoring Offerings

Fonterra’s application centres are integral to its strategy of driving innovation and tailoring its foodservice offerings to local tastes, culture, and trends. These centres provide researchers and chefs with the necessary spaces and equipment to develop new products in collaboration with customers. This approach ensures that Fonterra can meet the specific needs of the Chinese market, enhancing its competitiveness in the region.

Strategic Importance of China’s Foodservice Business

Fonterra’s CEO, Miles Hurrell, emphasized the strategic importance of the company’s ‘Greater China Foodservice’ business, highlighting the success of its cream products produced at the Waitoa UHT site. These products, such as the foodservice whipping cream, are integral to Chinese bakery stores, being used in approximately 400 million beverages and 260 million cakes annually. The increasing demand for these products reflects China’s economic growth and the growing preference for high-quality dairy ingredients.

Growth Opportunities in China

The expansion of Fonterra’s application centres in China signifies the company’s expectation of continued growth in its foodservice business. This growth is expected to drive further demand for its foodservice cream products, which Fonterra is well-positioned to meet. By leveraging its local expertise and the capabilities of its application centres, Fonterra aims to capitalize on the opportunities presented by the Chinese market.

Competitive Edge and Future Prospects

Teh-han Chow, Fonterra’s CEO of Greater China, highlighted how the combination of quality products, local expertise, and application centres gives Fonterra a competitive edge in China. The company’s focus on working closely with customers to develop product applications that support their businesses’ growth underscores its commitment to driving mutual success in the Chinese market.

Conclusion

Fonterra’s decision to open its sixth application centre in China reflects its commitment to innovation and growth in the region. By leveraging its expertise and resources, Fonterra aims to further strengthen its position in the Chinese foodservice industry and capitalize on the opportunities presented by this dynamic market.

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Dairy giant Fonterra has announced its plans to open its sixth application centre in China located in Wuhan 1
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