The boss of Fonterra is playing down concerns about the Chinese market.

Fonterra's half year profit is up 23 percent, and its interim dividend is up 50 percent, as it sells more processed product at a higher profit margin.

But it's keeping the forecast milk payout midpoint unchanged at $7.80, following a recent drop in global raw product prices.

Fonterra Chief Executive Miles Hurrell says China is still a growth opportunity, but it's only part of their diversified global strategy.

"It's less than 30 percent of our book. Their geopolitics at large are something we all need to be concerned about- but there's still growth in that middle class, we're riding that wave."

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