Fonterra, New Zealand’s leading dairy cooperative, is seizing the growing demand for butter in China’s bakery market by supplying butter for mooncakes. The Edgecumbe facility, known for its high-quality lamination butter sheets, is playing a key role in meeting the rising demand as Chinese consumers shift from plant-based fats to dairy in traditional pastries.
Fonterra, New Zealand’s leading dairy cooperative, is tapping into the burgeoning demand for butter in China’s bakery market. The company is supplying butter for mooncakes, a traditional pastry enjoyed during the Mid-Autumn Festival, reflecting a shift in Chinese consumer preferences towards dairy-based ingredients.
Fonterra’s Edgecumbe facility, located in the Bay of Plenty on New Zealand’s North Island, is at the heart of this initiative. Known for producing high-quality lamination butter sheets, the facility has become a key player in the supply chain for mooncakes. As New Zealand’s spring season boosts milk production, Fonterra is well-positioned to meet the increased demand for its butter products.
“Chinese consumers are increasingly favoring dairy over plant-based products, which presents a significant opportunity for us.”
Janek Tomaszewski, Cream Plant Manager at Fonterra
Traditionally, mooncakes were made with plant-based fats like lard or vegetable oil, but premium bakeries in China are now opting for butter to enhance the texture and flavor of these pastries.
In response to this shift, Fonterra has seen a notable rise in demand. Over the past three years, the company has exported more than 8,300 tons of butter sheets, with China and Southeast Asia being major markets. The Edgecumbe site, which processes up to 3.7 million liters of milk daily during peak production, plays a crucial role in fulfilling this demand.
As Chinese bakeries increasingly embrace butter in their recipes, Fonterra’s investment in dairy innovation positions the company to capitalize on this evolving consumer preference, further establishing its presence in the global bakery market.
