Fonterra has announced its second Chinese dairy farming development will be located in Ying County in Shanxi Province.
The Ying County hub will comprise five 3000 cow farms and employ about 500 people.
Fonterra is hoping the farms will be up and running in the second half of 2014.
The development is part of the dairy company's long term plan to produce one billion litres of milk in China by 2020.
It already operates a group of large scale dairy farms in Hebei province.