With an average profit margin of 80 percent for high- and medium-level liquid milk brands, such products will serve as another driving force for Fonterra's growth in China, said Song.

New Zealand's milk powder, butter and cheese exports in February were up 24 percent year-on-year to NZ$220 million ($185 million), according to Statistics New Zealand.

Exports of milk powder to China rose 80 percent in value to NZ$106 million, with volume up 99 percent.

Tim Groser, New Zealand's minister of trade, said during a visit to Shanghai on Tuesday, where he was accompanied by Fonterra executives, "The trading relationship with China is going to be extraordinary in the current period.

"We have a wonderful relationship (with China) and we expect further significant growth here."

Yu Ran in Shanghai contributed to this story