Japanese food group Meiji Holdings has started producing fresh dairy products for the Chinese market.

The company said that its subsidiary, Meiji Dairies (Suzhou) Co, has started manufacturing milk and yoghurt for China. Another subsidiary, Meiji Dairy Trading Shanghai Co, will start selling the dairy goods next month, with a focus on eastern China.

Meiji will offer Meiji Chun-Yi fresh milk in three sizes and Meiji Bulgaria yoghurt in sweetened and plain flavours, also available in three sizes.

The company is targeting sales of JPY2bn (US$20m) by 2016.

The move comes as part of Meiji’s “Take Off 14” strategy, which targets mid-term growth in China, Asia and the US.

Last month, the company reportedly said it would quit the Chinese infant formula category, citing growing competition in the sector and the cost of importing milk from Australia.

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In August, Meiji was among a group of companies found guilty of fixing prices for infant formula in China.

Six – including Danone and Mead Johnson – were fined. Meiji escaped financial punishment after providing evidence of the activity to Chinese authorities.

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