Fonterra plans dairy farm hubs

New Zealand's Fonterra Co-operative Group Ltd, the world's largest dairy exporter, plans to build four to six farming hubs in China by 2020 that will produce 1 billion liters of milk to meet rising demand for dairy products.

The dairy producer has five farms at its first hub in Hebei province and is building a second hub of five farms in Shanxi province.

Henk Bles, managing director of international farming ventures at Fonterra, said that the location of farms is critical, because these facilities must meet standards for soil and water quality, climatic conditions and sufficient feed for cows.