Dutch dairy co-op FrieslandCampina and Chinese group Huishan Dairy are to establish a joint venture (JV) to produce and sell infant formula in China. The milk supply for the JV will come from Huishan dairy farmers in China, while both companies will continue to run their existing infant formula businesses separately.

FrieslandCampina is already established in China with its Friso branded infant formula.

Leading company

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Huishan Dairy is one of China’s leading dairy companies and its branded liquid milk products have the highest market share in the north-eastern provinces of China.

Earlier this year, Danish co-op Arla invested €1.34m in a new cheese innovation centre in Beijing. Arla already has a partnership agreement with Chinese dairy company Mengniu.

Following the botulism scare last year, many foreign manufacturers of infant formula are trying to capitalise on Fonterra’s troubles in China.

China has also recently implemented new food safety rules to ensure infant formula brands have a direct link to manufacturers.