Arla Foods has announced a move to “support the sustainable development” of Bangladesh’s dairy sector through a tie-up with a local cooperative.

The European dairy giant, which markets milk powder under the Dano brand in Bangladesh, said the venture with MilkVita would help it better understand the country’s dairy market, with a view to launching “targeted products for a market which holds great potential”.

The deal would help MilkVita increase production per cow, Arla added.

“As a dairy cooperative with over 100 years of dairy experience on which drawn, we look forward to inspiring MilkVita and sharing our extensive knowledge about sustainable dairy farming, food safety and technology,” Tim Ørting Jørgensen, the executive vice president at Arla overseeing the company’s international operations, said.

Arla describes Bangladesh as one of its “key strategic markets” in south-east Asia. However, it says dairy production in Bangladesh meets only 40% of demand for milk in the country.

The Denmark-headquartered group said its “retail and foodservice revenue” in Bangladesh reached EUR42m (US$48.2m) in 2017 “and is expected to increase further in 2018”.

MilkVita describes itself as “the largest dairy cooperative” in Bangladesh. It markets products under its namesake brand.