Fonterra Farm – in 2007 As a Pilot, to Ensure We Could Produce New Zealand Standard Milk, Locally

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Fonterra Farm – in 2007 As a Pilot, to Ensure We Could Produce New Zealand Standard Milk, Locally

CHIN A - English FENCEPOST Our farm… s in China OUR FARMS IN CHINA It all starts with a safe, top quality supply of fresh local milk. Our goal is to be producing one billion litres every year in China by 2018 and with two farms milking in the Hebei Province and another three under development we’re on the right track. Everyday locals are consuming enough dairy nutrition to fill more than 1.2 million glasses and, with consumption expected to double over the next eight years, it is clear China will need more milk. We built our first farm – Tangshan Fonterra Farm – in 2007 as a pilot, to ensure we could produce New Zealand standard milk, locally. Since the first milking cups were put on, the herd size has doubled and the average production per cow has increased by 30 per cent. Today the farm is producing around 28 million litres of the country’s highest quality milk every year and employs around 140 local staff. We have another farm milking in the Hebei province and another three under construction. When complete these farms will milk about 15,000 cows and produce 150 million litres of top quality fresh milk every year. They will also employ 500 local staff. This will be our first farming hub in China and we will be looking to follow this with others across the country. Herds at our farms in China are housed in barns. Milked three times a day in state-of-the art milking parlours, the average cow produces around 34 litres of milk every day. Milk is stored in insulated silos on-farm before being loaded into tankers for delivery to local Chinese customers. No matter where in the world our milk is produced, it must meet Fonterra’s strict quality, safety and sustainability standards. All milking facilities are cleaned before and after milking and samples of all milk produced are frozen and kept on farm so it is always available to be tested. We work alongside local and national government as well as researchers to identify and implement leading sustainability technology on our farms and they feature some of the country’s latest technology which allows us to recycle farm water and treat effluent so it can be spread to land with no environmental impact. All our staff are trained to Fonterra’s Standards of Excellence – taking the knowledge developed through the generations in New Zealand and using it to up skill our local teams. Developing an integrated milk business in China starts with a top quality supply of local milk. It all starts on the farm. QUICK FACT S: When complete, our Hebei hub will have five farms producing 150 million litres of top quality milk every year It will have a combined herd size of about 15,000 cows It will employ 500 local staff Average production per cow – 34 litres per day NEWS AND MEDIA CAREERS FENCEPOST JOBS CONTACT FOLLOW US Latest news > Latest jobs > TERMS & CONDITIONS © 2013 FONTERRA CO-OPERATIVE GROUP.

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