Fonterra Enhances Innovation Capabilities in China with Chengdu Center Upgrade
Fonterra has announced the completion of an upgrade to its Chengdu Application Centre, relocating it to a central district in Jinjiang, Chengdu. Originally established in 2015, the modernized facility aims to bolster Fonterra’s customer innovation infrastructure in Southwest China. The upgrade includes the development of technical expertise, advisory chefs, and food-service partnerships to facilitate the co-creation, testing, and showcasing of customized dairy applications that meet evolving consumer preferences.
Teh-han Chow, CEO of Fonterra Greater China, highlighted that the investment builds on Fonterra’s nearly 50-year presence in China, reinforcing its strategy of staying close to end-use markets. This is particularly relevant as China’s food-service, bakery, and beverage sectors experience rapid growth, requiring quick, high-quality dairy solutions to adapt to shifting dining trends. The expanded facility includes modern test kitchens designed to evaluate product performance in various applications, from bakery items to functional tea and coffee drinks.
Chengdu, the capital of Sichuan province and a recognized UNESCO City of Gastronomy, serves as a strategic regional hub for food and beverage innovation. The upgraded site benefits from the expertise of Anchor Food Professionals advisory chefs, who conduct technical seminars, practical kitchen demonstrations, and virtual learning sessions. These initiatives are aimed at showcasing how grass-fed New Zealand dairy ingredients can enhance recipe formulation.
The Chengdu center operates as part of Fonterra’s broader network of six specialized application centers across mainland China, which also includes facilities in Shanghai, Beijing, Guangzhou, Shenzhen, and Wuhan. This distributed infrastructure enables Fonterra to capture regional flavor preferences, streamline application testing, and accelerate commercial rollout timelines for food-service clients across both Tier 1 and emerging lower-tier cities.
This strategic move marks Fonterra’s shift from bulk ingredient commodity sales towards high-value, specialized food-service partnerships. By translating local consumer insights into practical menu applications, Fonterra aims to increase demand for New Zealand milk solids, safeguard gross margins, and maximize returns for its farmer shareholders.
