Blog: Aussie billionaire set to tap into Chinese dairy market
Hannah Abdulla | 14 November 2014
Gina Rinehart is reportedly set to make a big investement into dairy and infant formula
Australian mining billionaire Gina Rinehart is reportedly looking to tap into rising demand in China for premium infant formula.
Press in Australia have reported Rinehart is planning a A$500m (US$435m) investment and partnering with an unnamed Chinese firm for the creation of one of "Australia's biggest dairy farms".
The new joint venture - to be named Hope Dairies - will also sell long life milk, reports say. And exports are expected to kick off in the second half of 2016.
Demand for infant formula and baby food in China is booming. In fact, according to Euromonitor International, the country already accounts for 23% of the US$41bn global market. In recent years a number of global players have announced they are upping their focus in China.
New Zealand's Fonterra recently struck a partnership with Chinese infant formula group Beingmate to create a "fully integrated global supply chain" that will utilise Fonterra's milk pools and manufacturing sites in New Zealand, Australia and Europe to bring product "from the farm gate direct to China's consumers".
Last month, Dutch dairy co-op FrieslandCampina announced a joint venture in China with Huishan Dairy Holdings, for the production and distribution of infant formula in the country.
But the Chinese infant formula sector is never far from controversy, not least the 2008 melamine scandal, which killed six babies and sickened thousands.
Safety is of utmost important to Chinese consumers, fuelling demand for milk and ingredients from western markets.
Hope Dairies is apparently planning to manufacture "pharmaceutical grade product", according to a spokesperson.
According to Bloomberg, an official announcement is expected tomorrow.
We hear a lot in the food industry about two interconnected trends: and social media and “foodie” culture....
Nestle, set to welcome a new CEO on 1 January, has announced more changes to the make-up of its senior management team....
Blue Bell Creameries is trying to win back the trust of consumers after a fatal listeriosis outbreak last year was linked to its products - but in recent days the US ice cream maker has issued another...
The UK's competition regulator has given the all-clear to Hain Celestial's bid to buy UK food and beverage group Orchard House Foods, nine months after the US group announced the deal....
- General Mills on Q1, innovation, margins
- Interview: Mondelez's outlook for China
- Aryzta FY results, outlook for 2017 - 6 takeaways
- What next for Bernard Matthews? - comment
- Interview: Mondelez eyes sweet success in China
- ConAgra acquires Frontera Foods' "gourmet" brands
- Nestle revamps foodservice arm
- Aryzta FY profits fall
- Nestle close to finalising Garoto deal
- Nestle launches Nesquik Protein Plus for adults
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Global Chocolate Confectionery Overview: Challenges, Opportunities and Risks
- Global Foodservice Market 2016-2020
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review
- Global Food and Drinks Closures: Performance and Opportunities