Fonterra is set to increase its milk production in China after signing an agreement today to develop two more large-scale dairy farms.
The investment agreement with Yutian County completes Fonterra's 'hub' of five farms in Hebei Province.
Fonterra said the two farms were located 120km east of Beijing, and would house about 3,350 cows each on an 80-hectare site.
The farms would produce up to 65 million litres of milk a year once fully operational, the dairy giant said.
The investment was part of Fonterra's strategy to build a local milk pool in China, said Fonterra Greater China and India president Kelvin Wickham.