Nature One will "co-develop new products" for the China market with Sinopharm

Nature One will "co-develop new products" for the China market with Sinopharm

Australia's Nature One Dairy has signed a partnership agreement to manufacture infant formula for export to the China National Pharmaceutical Group Corporation - Sinopharm.

Under the terms of the deal, Melbourne-based Nature One said it will produce an "all-Australian made infant milk formula brand in its Australian manufacturing facility" for Sinopharm in China.

Nature One CEO Nick Dimopoulos said the agreement will allow the dairy to "tap into Sinopharm's core business covering distribution, retail, research, development and manufacture of prevention, treatment, diagnosis, care, and other health-related products across China".

"Our aim is to be able to produce a wide range of formulated products to meet the demands of different consumer groups," Dimopoulos said. "We are excited to be able to work with Sinopharm on their infant formula brand Happy Veve, as well as to co-develop new products for the China market with Sinopharm, who is the largest retailer of medicines and healthcare products."

Nature One said the companies have also agreed to "work on the areas of infant milk formula, specialised milk powder products and other health-related products for export, as China has emerged as the world's most important consumer market for the food and beverage industry".

The agreement follows China's publication last year of new regulations on the production, registration and marketing of infant formula in the country.

Last month, China-based baby formula manufacturer Ausnutria acquired Australian dairy company ADP Group and 50% of another business in the country, the infant formula firm Ozfarm.

Earlier this month, infant formula and baby food maker Bubs Australia announced a "groundbreaking" tie-up with Chinese firm Brilite Nutritionals Co. to try to grow in China.