US ingredients group Martek Biosciences has entered into an agreement to supply Feihe Dairy, a subsidiary of American Dairy.

Under the terms of the agreement, announced yesterday (3 June), Feihe Dairy will buy polyunsaturated fatty acids DHA and ARA from Martek for its new infant formula and growing-up milk products in China.

“This new agreement with Feihe Dairy is another important step in Martek’s effort to expand its international presence in the Chinese infant formula market,” said Binglin Shen, general manager of China operations for Martek.

“We are pleased to be working with Feihe Dairy and believe this agreement again demonstrates that companies around the world continue to recognise the importance of adding Martek’s trusted sources of DHA and ARA to products for infants and children.”

Martek manufactures nutritional oils that contain the long-chain polyunsaturated fatty acids DHA and ARA. The firm’s blend of DHA and ARA, marketed under the brand names life’sDHA and life’sARA, is used in around 95% of US infant formulas.

This is the third supply deal Martek has struck for the Chinese market this year.

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In April, the company won a contract to supply life’sDHA to Chinese food group COFCO.

And, more recently, it struck a deal to supply the product to Chinese dairy Mengniu.