New Zealand dairy group Fonterra has formalised an agreement to give it greater access to the Chinese market with San Lu, after Fonterra acquired 43% of the Chinese dairy company last December.
 
Fonterra is the largest exporter of dairy products to China, but currently trade - valued at about NZD150m - is mostly in milkpowder.

According to a report by the New Zealand Press Association, Fonterra China managing director Bob Major said that the deal represented a significant step-forward in Fonterra's strategy for global growth.

"We bring complementary strengths to the joint venture and we are both well-established players in this market. The combination of rising incomes and a growing appetite for dairy is creating huge potential in the China market," he said.