Dutch dairy firm FrieslandCampina has announced it has entered into discussions with China Huishan Dairy Holdings Company for an infant-formula joint venture.
Under mooted plans, FrieslandCampina said the companies would “leverage their experience and expertise “to produce, market and sell infant formula products in China. Huishan will provide raw milk from its own dairy farms in China to the joint venture, which would manufacture the formula.
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Both companies will continue to run their existing infant formula businesses separately in the market. Huishan will carry on marketing its own brands and FrieslandCampina’s Friso brand will still be produced in the Netherlands and marketed by the Dutch co-op.
However, FrieslandCampina said the purpose of the joint venture is to operate a “fully integrated infant milk formula supply chain” to sell infant formula products in China.
A joint statement from the firm read: “Huishan and FrieslandCampina believe that the proposed joint venture will benefit from their respective production, sales and marketing capabilities. The companies already successfully cooperate in the production of non-dairy creamers”.
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By GlobalData
