Arla creates milk powder j-v in China

By Dominique Patton

- Last updated on GMT

Related tags: Milk powder, Milk, Powdered milk

Scandinavian dairy firm Arla Foods has set up a joint venture with
the China Mengniu Dairy Company to produce milk powder for Chinese
consumers.

China is the world's largest market for consumer packed milk powder, a core business for Arla Foods, which will have a 49 per cent stake in the venture.

The parnership business will produce milk powder locally as well as distribute it in consumer packs. It will also handle imports and distribution of added value Scandinavian produced milk powder.

Arla ( website​) says that milk powder is showing clear signs of growth in China. It currently accounts for 5 per cent of Mengniu's turnover, or about DKK275 million.

The Hong Kong-listed dairy is located north of Beijing and said to be China's leading dairy company as well as the fastest growing.

"We have the necessary know-how with regard to added value milk powder products and our partner has an excellent distribution and sales network which makes for a good match,"​ said Arla Food Ingredients sales director Jais Valeur.

Related topics: Business, East Asia, Dairy, China

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