Fonterra said it plans to spend $150 million on building two new cream cheese plants at its plant in Darfield, where the co-operative already operates a huge milk powder making facility.
The Darfield plant in Canterbury - which opened in 2012 - already makes high quality instant and regular whole milk powder for export to more than 40 markets across South East Asia, China and the Middle East.
With cream cheese undergoing a steady surge in popularity in Asia, the new project will see the first plant completed in 2018 with a second to follow in either 2019 or 2020, Fonterra said.
The two new plants will incorporate Fonterra technology that will allow the firmness and consistency of the cream cheese they produce to be "dialled up or down" to meet customer preference.
Fonterra's director of global foodservice, Grant Watson, said more consumers around Asia were developing a preference for milk-based products.