China’s demand for New Zealand dairy products has been strong over the last few months as bakeries, pizza chains and other food retailers stock up for the country’s biggest festival of the year.
Global dairy commodity prices have climbed nearly 5% since October last year, and demand for Foodservice ingredients in China has been strong over this period leading into Chinese New Year, which this year began on 29 January.
Justin Dai, Fonterra’s Vice President for Foodservice Greater China, says Chinese New Year is typically a boost for New Zealand dairy exports.
“Every year, our Foodservice products like UHT cream and mozzarella cheese are used in millions of cakes and pizzas during the Chinese New Year festival,” he says.
“Chinese New Year is all about family gatherings and celebrating with loved ones. Chinese consumers love shopping and dining during this time, which is great for our Foodservice channel.”
Common applications for Fonterra’s dairy are dishes specifically themed for the New Year and some of these applications are developed at Fonterra’s six applications centres in China.
“There are more than 500 cities in China that we’re supplying to, each with unique cuisines, trends and preferences. Our team of chefs at these application centres work closely with customers to co-create applications that cater to the local taste, which is crucial for our Foodservice growth in China,” Justin says.
Fonterra is also seeing strong demand from Southeast Asia where Chinese New Year is known as Lunar New Year.
Jack Tan, Fonterra’s General Manager for Philippines and Southeast Asia Foodservice, says like Christmas in New Zealand, Lunar New Year is a time of family reunions and gift giving in Southeast Asia.
“Lunar New Year is an important holiday for people in Vietnam, Singapore and Malaysia. One way people celebrate is by gifting food, like cookies and other sweets hampers,” Jack says.
Traditionally plant-based oils would have been used to make such bakery products, but nowadays butter and other dairy products are being used more often.
“Our butter exports to Vietnam over the last few years have jumped significantly in the lead up to the festive season, primarily driven by bakery customers who produce cookies for Lunar New Year gift sets or hampers.”
“Dairy is not traditionally used in the local cuisine in Southeast Asia, so bringing dairy to the everyday staples is an important part of our strategy,” says Jack. “The growing appetite for fusion Western-style dishes in Southeast Asia will also support demand for dairy ingredients like cheese, butter and cream.”