Fonterra takes $30m stake in Hebei dairy

New Zealand’s dairy giant Fonterra said it would invest US$30 million in a dairy farm in Yutian, Hebei province, state media reported. Fonterra will transport 3,000 cows from New Zealand to Yutian where it targets annual output of 32 million liters. The farm will be ready for milking in November of next year. Fonterra’s new dairy acquisition will focus on delivering fresh milk, as well as yoghurt and infant formula, to the local market. Fonterra lost more than US$100 million in its investment in Sanlu, the mainland dairy firm that collapsed after the 2008 milk scandal, and is hoping to regain share of a rapidly expanding market for milk and milk-based products.