The Netherland’s biggest dairy company, Royal FreislandCampina, is implementing a ‘grass to glass’ approach to China’s dairy production industry through which it aims to gain annual sales of $1.26 billion. FreislandCampina has been active in the Chinese dairy market since 2008 but now wants to significantly expand its presence through a joint venture with the Chinese dairy company Huishan. Under the agreement, the joint venture would produce and sell high quality infant milk formula through the operation of an infant milk formula supply chain. Huishan, which has 30,000 acres of land and operates 50 dairy farms, with the country’s biggest Jersey cow herd and its second biggest Holstein cow herd, would supply the raw milk. FreislandCampina plans to implement a quality control monitoring system along the entire production chain to be known as ‘foqus’. Beginning at the dairy farms, milk being collected will be tested for antibiotics, irregularities, temperature and color. In addition, milk from individual farms will be assessed for bacteria count, somatic cell count, sediments, freezing point, butyric acid levels, chloroform, and fatty acids. FreislandCampina is making its move into the Chinese dairy market relatively late compared to other international giant dairy companies, however it sees this as an advantage as the market is currently more advanced.
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