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.
Since the launch of the programme, around 50 Coolcare milk chilling units have been installed on Fonterra farms across the country, resulting in approximately 5800 tonnes of carbon dioxide equivalence (CO2e) being avoided - based on a total emissions warming impact (TEWI) calculation carried out on each farm’s conversion to a VariCool milk chilling system.
Coolcare – a New Zealand- owned and operated milk refrigeration company – has been collaborating with Fonterra, Purpose Capital, the New Zealand Green Investment Finance and Cool- Safe to deliver the PAUS Programme.
It’s an exclusive deal for the co-operative’s farmers whereby they can lease new milk chilling systems that are cost-effective to run and use fourth generation refrigerant gases that have CO2e of around 80% less than those typically used in older systems.
Joe and Becky Laming from Altavady Group near Oamaru are among the farmers who have signed up to the PAUS Programme, and they say they highly recommend it to others.
“It’s hassle-free and it works. Over 30 days in September 2024, it saved us $972 in dairy shed electricity and hot water generation compared to our previous system,” says Joe Laming.
Timaru-based Bruce Murphy of Murphy Farms is another early adopter who says he’s enjoying the benefits of the new system.
“Our old unit was out of date, and this came as a good option,” says Murphy.
“What really appealed to me was the fact that the lease is seven years. Technology is moving at a fast rate, and in the end, we will have the ability to replace that unit with current technology.
“Murphy Farms are planning to convert all six of our farms to the PAUS Programme over the next couple of years.
“We are very happy with it, and it’s easy to operate.”
Fonterra and Nestle’s Net Zero Pilot Dairy Farm in the Taranaki is also using one of the units.
Anne Douglas, group director for Fonterra Farm Source, says the cooperative is delighted to be part of a collaboration that’s delivering tangible benefits to farmers.
“We’re always looking at ways to help make things easier on farm, and this includes working with others where it makes sense to,” says Douglas.
“Through the PAUS Programme, co-op farmers have a quality milk chilling option that’s not only cost effective and hassle free in terms of maintenance – but also delivers benefits such as reduced emissions and electricity savings.
“As more farmers take part, the positive impact on both the industry and the environment will continue to grow,” Douglas says.
Coolcare chief executive Allan Steele says the first year of the partnership has been about laying great foundations, including ensuring the best possible support in place for participating farmers.
“Farmer feedback has been positive overall, and the interest is growing,” says Steele.
“We are starting to scale up production of the units from our facility in Hamilton and we look forward to assisting more farmers through this initiative over the next 12 months.”
