Fonterra is building new factories to keep up with China’s new appetite for dairy foods, as Bill Bennett reports

Tea macchiato is a modern Chinese drink topped with a mixture of cream and cream cheese, so popular that there are often queues to buy it.

Fonterra’s food services business will soon pass $2 billion in annual revenue and reach $5 billion within the next six years.

“That’s not a forecast, it’s a commitment,” says Fonterra’s director of Global Foodservice, Grant Watson. “China will be a significant contributor to that growth.”

Foodservice sells dairy products to businesses that prepare food outside of the home – everything from restaurants to kiosks, including airline and prison meals.

Watson says the division is growing at three times the rate of the global foodservice industry.

Back to Latest