New Zealand dairy giant Fonterra is doubling down on the Chinese market after receiving official recognition under the newly launched New Zealand Grass Fed Standard, a move aimed at strengthening its premium positioning as a dairy producer and exporter.

New Zealand Prime Minister Christopher Luxon, who is on an official visit to China this week, presented the co-operative with a certificate recognizing Fonterra's grass-fed scheme under the newly launched standard in Shanghai.

"China is our most important strategic market," said Teh-han Chow, CEO of Fonterra Greater China and president of global food service Fonterra.

"For nearly half a century, we have achieved tremendous business growth in China by partnering with Chinese customers in nutrition and innovation."

The New Zealand Grass Fed Administrative Standard sets a global benchmark for high-quality grass-fed dairy. It stipulates that dairy cows must consume a diet comprising at least 90 percent grass-fed feed and spend a minimum of 8 hours per day on pasture for 340 days a year on average.