WELLINGTON, Feb. 19 (Xinhua) -- New Zealand's dairy giant Fonterra plans to expand its food service business to more second- and third-tier cities in China by enhancing its products through investment in innovation, continuous menu development, and strengthening its offerings in Chinese cuisine.

"Fonterra has had a lot of success in China. China is one of Fonterra's most important strategic markets," Teh-han Chow, Fonterra's Greater China chief executive, told Xinhua.

Owned by New Zealand farmers, Fonterra has benefitted greatly from the healthy bilateral relationship between New Zealand and China, Chow said, adding over the years, Fonterra has witnessed tremendous business growth through partnering and collaborating with local customers in the areas of nutrition, innovation and sustainability.

There is strong alignment between Fonterra's priorities and those of the Chinese government, such as nutritional targets for dairy consumption and China's emissions reduction targets, he said.

"The China market is showing strong signs of recovery post-COVID. Over the years, dairy consumption has grown significantly in China and is expected to continue to do so," Chow said, adding Fonterra combines high-quality New Zealand dairy products with Chinese consumer preferences to develop new and innovative products.

Fonterra opened its fifth Fonterra Application Center in Shenzhen in 2023 and recently upgraded its application centers in Shanghai and Beijing.