Wattle Health Australia, an infant formula manufacturer, has signed a manufacturing and distribution deal with Chinese nutritional dairy company Nouriz.
The companies have agreed to establish a 50/50 joint venture, based in Australia, which will make and sell a new brand of Australian organic nutritional products, including infant formula, in China.
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These products will be sourced from Corio Bay Dairy Group (CBDG), itself a joint venture between Wattle, Organic Dairy Farmers of Australia and Niche Dairy.
In a statement to the Australian Securities Exchange (ASX), on which Wattle is listed, the Victoria-based company said the agreement provides “a relationship that will open channels and distribution networks into China, the world’s largest market for nutritional dairy products”.
Wattle executive chairman Lazarus Karasavvidis said: “With this agreement we have secured an exceptional and experienced partner to market and distribute in China a range of certified organic premium milk powder products.
“Nouriz has a strong on the ground presence and deep experience in selling premium dairy products in the China market.
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By GlobalData“With the Corio Bay spray drying facility on track for completion in the first half of 2020, the new JV will have access to a range of high-quality organic powders for sale into the China market.”
Liu Ning, chairman of Shanghai-based Nouriz, which has its largest shareholder Chinese state-owned enterprise China Animal Husbandry Group (CAHG), said: “China recognises Australia as a country that has very good farming land with a history of exporting high quality dairy products.
“China consumers also consider dairy products from Australia to be premium due to the quality systems from farm to market. Nouriz is excited to be collaborating with Wattle Health and Corio Bay Dairy to develop a range of premium organic consumer products from Australian organic milk for Chinese consumers.”
