Multinational dairy company Fonterra and the China National Research Institute of Food and Fermentation Industries have signed an agreement to enhance collaboration between the dairy industries of China and New Zealand.

The "China-New Zealand Dairy Industry Sustainable Development Strategic Cooperation Agreement", signed on Friday, has been designed to boost exchanges between China's dairy sector and those in New Zealand in terms of technologies, quality control systems, management practices, and operational methods.

Several key areas of cooperation are part of the agreement, including the establishment of the China-New Zealand Dairy Industry Sustainable Development Joint Research Center.

The initiative will focus on developing standards, innovating technologies, advancing product lines, and applying sustainable development principles. The two sides will also jointly host summit meetings. An exchange mechanism will conduct joint exchanges, training programs, and research initiatives.

China and New Zealand agreed on Thursday to commence trade in services negotiations based on a negative list approach, as part of efforts to enhance their comprehensive strategic partnership.

Teh-han Chow, CEO of Fonterra Greater China, said, "China has always been one of the most strategically important markets for us. We have achieved great success in China and are highly confident in the future of the Chinese market."

As the 10th anniversary of the Comprehensive Strategic Partnership between China and New Zealand is being celebrated, China has entered a new phase of high-quality development.

Fonterra will continue to support the country's agenda, and act quickly to meet its evolving market demands. The company continues to invest in innovation in China's dairy sector, Chow said.

It has five Fonterra Application Centers (FAC) in China, focusing on developing new applications for dairy products and helping customers adapt to local market trends.

The company will open its sixth center in Wuhan, Hubei province, later this year.

Fonterra in China encompasses a wide range of sectors spanning ingredients, food services, and consumer brands, which includes Anchor, Anchor Food Professionals and NZMP.

Fonterra Cooperative Group Ltd's interim results for fiscal year 2024 show strong earnings performance.

The Chinese market reported profit after tax rose by NZ $94 million ($57.7 million) to NZ $232 million, primarily due to better performance in its food service channel.

"China is committed to a high level of openness, continuously providing a favorable business environment for enterprises from China, New Zealand and other countries," Chow added.

"The Chinese government emphasizes openness and is actively implementing the upgraded China-New Zealand Free Trade Agreement, creating opportunities for businesses of the two countries to establish mutually beneficial partnerships and promote trade and economic growth, thereby contributing to the prosperity of an open world economy," he added.