City view of Auckland, New Zealand Photo: Shan Jie/GT

As the ninth China International Import Expo (CIIE) is underway in Shanghai, New Zealand dairy giant Fonterra sees China as one of its most important strategic markets, with the company expanding its production capacity to meet demand for high-value dairy products, Peter McBride, chairman of the company, told the Global Times in a recent written interview.

Fonterra is attending the CIIE for the ninth consecutive year. "The CIIE offers a valuable opportunity for us to connect directly with customers, build and strengthen local partnerships, and see first-hand how the Chinese market evolves at 'China Speed,'" he said.

In the first three quarters of 2026, China's imports of dairy products reached $9.69 billion, with high-end dairy imports growing rapidly, the Beijing News reported on November 6, citing an official with the Ministry of Commerce. Imported cheese stood at $920 million, up 15.9 percent year-on-year; imported whey totaled $710 million, up 9.6 percent; and imported lactalbumin hit $600 million, up 31.9 percent.

A June 2026 report by the US Department of Agriculture's Foreign Agricultural Service noted that the expansion of foodservice and bakery sectors is supporting steady demand for butter and cheese in China.

According to McBride, Fonterra has grown significantly in China over nearly 50 years, and the company has established six application centers across the country.

The centers combine local market insights with Fonterra's global innovation capabilities to develop dairy applications at "China Speed," McBride said, noting that China's rapid innovation and diverse customer and consumer needs also make it an important market for the firm to develop solutions that can create value both locally and globally.

Fonterra's 2026 annual report showed that China generated NZ$7.407 billion ($4.1 billion) in external revenue for the cooperative in the fiscal year, up 3.8 percent year-on-year, remaining the cooperative's largest single market.

To meet demand for high-value dairy products, Fonterra is expanding its manufacturing capacity in New Zealand. In September, it announced an additional NZ$1 billion investment over three years to expand dairy protein manufacturing in the South Island.

It is also building a NZ$150 million long-life cream plant in Edendale to support foodservice growth across Asia, particularly China, while a NZ$75 million expansion of its butter plant in Clandeboye is aimed at meeting growing global demand, particularly in China, McBride said.

Zhao Ruonan contributed to the story