Fonterra will start construction of two more large scale dairy farms in Northern China next month.
The farms, 120km east of Beijing, will have almost 7000 cows.
They will complete a five-farm hub that Fonterra is establishing in Hebei province. They will produce up to 65 million litres of milk per year when they are all fully operating.
Fonterra is planning several more dairy farming clusters in China, with the ultimate aim of producing up to 1 billion litres of milk per year to meet the growing demand for dairy products there, which is expected to double by 2020.