China’s food service market is easier to penetrate for dairy firms such as Fonterra and Friesland, as chefs trained in demo kitchens find ways to use dairy. At $150 billion a year, China’s food service sector is the largest in the world after the US and Japan, as western-style cuisine is growing in popularity.
China now accounts for a quarter of the Fonterra’s food service business — a share that will expand as the company targets $3.5 billion in global revenue from that segment by 2023. It’s a lower-value business, with a profit margin 20 to 50

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