The Chinese market has continued to be the highlight for the first half-year fiscal report for world-leading dairy producer Fonterra Co-operative Group, with a 38 percent increase in earnings before interest and tax to NZ$339 million ($243.5 million), driven by its food service and consumer businesses and the country's strong economic recovery following the impact of COVID-19.

According to Fonterra, innovations in product portfolio and applications to better serve customers and clients have contributed to the continuous growth of its performance in China.

Fonterra China's ingredients sector, the largest in its Chinese business, has focused on developing value-added products, thanks to rising health awareness in diet among local consumers as a result of the pandemic.

Of its nearly 20 new products innovated in the first fiscal half year, dairy protein, probiotics and cheese have been widely applied, driving up sales in this unit.

Its food service section has expanded to 22 new cities in the country, resulting in its network covering 372 cities and over 78,000 catering outlets.