Fonterra Co-operative Group Ltd, New Zealand's largest milk processor and dairy exporter, is aiming to launch its branded infant formula in China in the middle of the year and plans to set up a liquid milk manufacturing plant in the country soon.

The company's plan to expand its business from dairy farming to infant formula and milk manufacturing, which generate higher profit margins, is expected to strongly increase its presence as well as revenue in the lucrative Chinese dairy market, analysts said.

Fonterra has already been selling Anmum Materna products - formula for expectant mothers - in some regions in China and online.