• Co-op and financials
  • Foodservice

Article

Grass-fed and in-demand in China

  • Co-op and financials
  • Foodservice

China’s bakery scene moves fast with new trends, new demands and new opportunities, and your Co-op has been keeping pace.

Earlier this year, Fonterra took to the stage at Bakery China 2026 in Shanghai – Asia Pacific’s largest and most influential bakery and patisserie expo. The event is a key platform for our teams to connect with customers, strengthen partnerships and showcase what’s next.

Front and centre was the launch of the Co-op’s Anchor Food Professionals Essence Cream, a new product developed specifically for bakeries in China.

Designed for professional use, Essence Cream delivers a light, smooth texture and reliable performance – well suited to cake fillings and soft bakery products – while responding to growing demand for simple, affordable ingredients. It builds on the success of Anchor Food Professionals Easy Bakery Cream, launched in China nearly two years ago.

Anchor Food Professionals Essence Cream is also the first dairy product in the China market to carry the FernMark Grass-Fed logo.

The logo makes it easier for consumers and customers to spot products containing dairy from a New Zealand grass-fed source that meets the New Zealand Grass-Fed Standard. Fonterra CEO Greater China Teh-han Chow says New Zealand provenance is landing strongly with customers.

“Chinese consumers are increasingly prioritising health, transparency and natural ingredients, particularly in bakery and dessert occasions, with many consumers willing to pay a premium for natural dairy products,” he says.

“New Zealand provenance and grass-fed production really matter in this market.”
 


Nine months from idea to plate

Meanwhile, at the Co-op’s Eltham site in Taranaki, another Foodservice innovation has been coming off the line: a 500g Anchor Food Professionals Parmesan block, designed with Foodservice customers in mind, particularly in China.

It’s built around how chefs work with premium quality parmesan in an accessible pack size that’s manageable in both size and cost. Kitchens are using it across a range of dishes – sprinkled over salads, added to pasta and blended with mozzarella on pizza.

By leveraging existing manufacturing capability at Eltham and responding directly to customer demand, teams moved from idea to market in just nine months. And customers love it. After sampling the new smaller format, orders came in droves and production almost doubled from original forecasts.
 


Why it matters on farm

Foodservice is a high-value channel for the Co-op, and Greater China is one of our most strategic growth markets. Whether it’s a new cream backed by New Zealand’s grass-fed credentials, or a cheese format shaped around what busy kitchens need, these innovations are another way your milk is being turned into the high-value products customers are asking for.