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Friesland Campina, the fifth largest dairy processor in the world, commented on the recent share crash at China Huishan Dairy Holdings Limited – confirming the companies’ joint venture, Friesland Huishan Dairy, continues to be operational.
Its adds, however, that the situation is being closely monitored and it will, if necessary, “take appropriate action to ensure the successful continuation of the joint venture’s activities in the Chinese market”.
Joint venture
The Dutch based co-op is linked to China Huishan Dairy Holdings through the joint venture, where each company owns 50% of the shares.
The joint venture was established for the production and marketing of infant formula under the Dutch Lady brand in China. It also produces tea and coffee creamers.
A fortnight ago, shares in China Huishan Dairy Holdings fell by 85% on the Hong Kong Stock Exchange.
Shares in the integrated dairy company, which owns 81 dairy farms and 95,000 milking cows, as well as milk processing facilities in China, dropped from HK$2.80 (€0.34) to HK$0.42 (€0.005) overnight, wiping an estimated €3.81bn off the value of the company.
China: Part 1: What does the future of Chinese dairy look like?
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