Fonterra Expands China Foodservice Business with New Anchor Essence Cream
Fonterra is strengthening its foodservice presence in China with the launch of a new cream for professional bakeries at Bakery China 2026 in Shanghai.
Fonterra's new Lichfield, South Waikato, dryer is the largest in the world, co-equal with the Darfield D2 dryer in the South Island, says the co-op’s chief operations officer, Robert Spurway.
It will allow the processing of an additional 4.4 million litres of milk each day, taking total daily processing capacity to 7.6m L.
Processing such large volumes is a resource-intensive business that needs careful handling, he says. “We focus on making sure impacts are minimised wherever possible.
“A new biological wastewater treatment plant ensures we can treat any waste [entering] potable water before it is irrigated to land near the site – the most environmentally sustainable solution.
“We’re making good use of rail to move product to port, eliminating up to 40 truck movements from the site every day, which free up local roads and reduce our carbon emissions.
“A by-product from the treatment plant is a high quality fertiliser used by local farmers.”
Larger scale dryers such as Lichfield are part of balancing Fonterra’s assets to give the best value for farmers.
“As we’ve seen in recent GDT auctions, premium milk powder is a valuable product for Fonterra in its own right. But people often underestimate the strategic importance of powder production to Fonterra’s overall asset mix.”
The new plant will help the co-op balance its processing, allowing it to switch between products quickly to meet demand changes in global markets, increase production when milk volumes dictate, and achieve the best product mix for returns.
Farmers should be cautiously optimistic as the 2026/27 season kicks off, says DairyNZ.
RaboResearch senior analyst Emma Higgins expects the 2026/27 dairy season to be another profitable one.
The new dairy season is kicking off with plenty of risks to the forecast farmgate price, both upside and downside, says ANZ agricultural economist Matt Dilly.
A potential showdown between the top two Federated Farmers leaders looms at the farmer lobby's annual meeting later this month.
FarmIQ Systems has developed a free land management app to help remove barriers to New Zealand farmers and growers adopting digital tools.
Rural Women New Zealand has announced the winners of the 2026 NZI Rural Women Business Awards.
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