WELLINGTON, Nov 2 (Reuters) - Fonterra (FCG) is ramping up...

WELLINGTON, Nov 2 (Reuters) - Fonterra (FCG) is ramping up production of its UHT cream, the dairy giant said on Tuesday, to meet growing demand from Asia for dairy produce that does not need refrigeration.

The New Zealand co-operative said it was bringing forward the opening of a new production line, which would produce 40 million litres of whipping cream a year, to February. The production line had been originally scheduled to open in 2018.

Fonterra's dedicated UHT facility currently produces 100 million litres of product a year.

UHT, or ultra-high temperature, processing allows dairy products to stay fresh even if unrefrigerated. UHT products are in strong demand in the fast-growing Asian market where electricity access can be more unreliable than in Fonterra's Western markets.

"The fact we have needed to bring the project forward is a good sign of dairy's growing popularity in China," Fonterra's director of global foodservice Grant Watson said in an emailed statement.

The strategy underscores Fonterra's attempts to focus on growing its foodservice business and create value-added products that move the company away from relying on milk powder shipments, which are subject to volatile commodity prices.

An auction held early on Wednesday showed dairy prices were continuing to recover after plummeting for two years. The Global Dairy Price index climbed 11.4 percent, with an average selling price of $3,327 per tonne.

Fonterra's food service division earnings before interest and tax grew 42 percent in the year ending July to NZ$580 million ($418 million). Fonterra plans to grow the division to NZ$5 billion by 2023. ($1 = 1.3883 New Zealand dollars)