Chinese New Year is driving demand for New Zealand dairy ingredients as bakeries, pizza chains and other food retailers stock up.

Chinese New Year typically is a boost for New Zealand dairy exports, New Zealand dairy giant Fonterra's Vice President for Foodservice in Greater China Justin Dai, said on Tuesday.

Demand for food service ingredients in China has been robust over this period, and Fonterra's food service sales in China are expected to continue to grow rapidly, Dai said, adding that global dairy commodity prices have climbed nearly 5 percent since October 2024.

"Chinese New Year is all about family gatherings and celebrating with loved ones. Chinese consumers love shopping and dining during this time, which is great for our Foodservice channel," he said.

Applications like strawberry cream cake for instance are becoming more popular, as Chinese consumers love red-theme food during this time of the year because red is associated with prosperity and good luck, Dai said, adding the growth in demand has also been driven by restaurants developing new dishes and tasty treats for the new year, which is a big part of the food service industry in China.

Some of these applications are developed at Fonterra's six applications centers in China, he said, adding the Fonterra team of chefs at these centers work closely with customers to co-create applications that cater to the local taste, which is crucial for the cooperative's food service supplying to more than 500 cities in China.