Joint venture with Fonterra brings expertise to Chinese infant formula firm

SHANGHAI - New Zealand’s Fonterra Co-operative Group Ltd, the world’s largest dairy exporter, will form a partnership with Hangzhou-based Beingmate Baby & Child Food Co Ltd, tapping into the profitable formula retail market in China. Fonterra said it will invest US$514 million in the arrangement, providing high-quality ingredients and technical expertise.

In July, Fonterra and Abbott Laboratories signed an agreement to develop a dairy farm hub in China. Their knowledge of farm management, milk production, dairy processing, quality control, tracking and tracing, and dairy nutrition will provide Beingmate with the tools and capabilities to grow their industry in the domestic sector.

Although the Chinese formula market faced many obstacles after food safety scandals, infant formula sales in China reached RMB 60 billion last year, and sales are set to rise to RMB 100 billion by 2018. www.webershandwick.cn (ATI).