Market insight specialist Jeremy Zhu, and his colleagues from Fonterra's Anchor Food Professionals (AFP) team, work alongside Chinese Foodservice brands to add a 'wow' factor to food by adding Fonterra dairy. They're part of one of five Fonterra Application Centres (FACs) in Asia, that focus on innovating at the heart of high-value, high-growth Foodservice markets - intended to increase the value and use of our farmers' milk.
Jeremy shared some insights into the Chinese market during a recent trip to New Zealand.
"Our customers - bakeries, beverage, dining brands, and more - buy our Fonterra dairy ingredients to apply in the creation of products they sell to consumers," says Jeremy. "In my role, I'm responsible for our understanding of Chinese consumers. I provide insight on things like preferences and purchasing behaviours, which flavours consumers like or how they like to buy food. And then I collaborate with our chefs and customers to develop new ways to meet these preferences."
Jeremy's team was in New Zealand in July to attend an innovation workshop but made time to stop off at the Waitoa processing plant and a local farm. "We wanted to meet some kiwi farmers and get an understanding of how things work in New Zealand."
Jeremy says he was struck by the long history of the farm he visited. "We met one farmer and he shared some of his story with us - how he was raised. His farm is intergenerational and can be traced back for more than a century. It was so impressive."
Jeremy was also impressed by how committed kiwi farmers are to protecting the land. "The farmer we met had such a strong sense of responsibility to take care of the farm and living spaces. He even had a sign on the wall that read 'people come and go, but the land remains forever'. That stayed with me and summed up my impression of New Zealand farmers," he says.
"New Zealand heritage is important - the farming style in New Zealand sets our dairy products apart from the rest."
- Jeremy Zhu, Market Insight Specialist at Anchor Food Professionals
And that's something that Jeremy sees day to day in China. He explained how careful Chinese consumers are when it comes to the origin of their food.
"Chinese consumers' health awareness is continuing to grow post COVID. They want to buy healthy products that are good for their daily intake. They see New Zealand dairy as a natural ingredient, that's pure and sustainable."
And it's not just Jeremy who has noticed.
"After the Chinese government announced a pledge to meet net zero, there has been a rising awareness around sustainability among our food brand customers too. They want to do more about sustainability. It's a good way to engage their own consumers. We are exploring ways to bring more sustainable solutions as a value-add for these brands."
One other trend that Jeremy sees driving Chinese buyers is the value placed on traditional dishes. "We're noticing increased Chinese pride, so we're finding ways to integrate dairy into Chinese foods. Creating new spins on old favourites."
One bakery customer purchased New Zealand butter to make their Chinese flower pastries creamier and more attractive to customers. "They're more willing to use New Zealand dairy ingredients, as it helps to build their own brand image," says Jeremy.
When asked what learnings he would take from his New Zealand trip, Jeremy says, "We want to let Chinese customers know how New Zealand farms really work. We want them to really understand how premium New Zealand dairy is. New Zealand dairy farmers are among some of the best in the world."