Beverages, China, Company News

Fonterra to open new application centre in Wuhan China

This new addition will join the existing Beijing, Chengdu, Guangzhou, Shanghai, and Shenzhen centres

Fonterra has announced the opening of its sixth application centre in China, set to open later this year in Wuhan. Construction of the centre is currently underway. This new addition will join the existing Beijing, Chengdu, Guangzhou, Shanghai, and Shenzhen centres.

CEO Miles Hurrell highlights the significance of Fonterra’s Greater China Foodservice business within the Co-op’s value-add strategy, particularly emphasising the strong contribution of the cream products produced at Waitoa UHT.

He mentions that the formula for the food service Whipping Cream was developed by the expert team at Fonterra’s Research and Development Centre in Palmerston North. This serves as a prime example of leveraging innovation to add value to farmers’ milk.

Hurrell also points out the substantial usage of the product, indicating that it is utilised in around 400 million beverages and 260 million cakes in Chinese bakery stores annually. He notes a continuous increase in demand since 2014.

The application centres are emphasised for their crucial role in driving innovation and adapting Fonterra’s food service offerings to align with local tastes, culture, and trends. These centres provide specialised spaces and equipment for technical experts and experienced chefs to test and develop new products, often in collaboration with customers.

The addition of a new application centre in China is seen as indicative of the anticipated growth in the Greater China Foodservice business. It also signals the expectation of increased demand for food service cream products, for which Fonterra is well-prepared to meet.

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