Yum Brands, which operates fast food restaurants including Pizza Hut estimates that China’s fast food-consuming class will increase to 600 million by 2020. This trend is driving demand for fast food and is causing Fonterra ( which also supplies cheese to Dominos Pizza) to increase its mozzarella cheese output at its two New Zealand plants to 50,000 tons per year, or enough to make 350 million pizzas, by 2020. Fonterra also plans to more than double the number of its offices and operations in China to 50 locations in order to meet demand. Urban Chinese inhabitants spend 2.5 times the amount on food as do rural inhabitants sparking a growth in a global pizza market that was worth $125 billion at the end of 2012. Fonterra has invested $62 million into its Clandeboye, New Zealand plant to cut processing time for mozzarella production from two months to one day. Yum Brands, which opened its first pizza chain in 1990 plans to increase its number of food outlets in China by 700 and to increase its number of Pizza Hut restaurants to 1,100.
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