Chinese Dairies Invest in Europe and Oceania

CHINA - Chinese dairy companies are looking abroad to fulfil the countries demand for safer dairy products after the problems they have been experiencing with domestic produce.
calendar icon 22 October 2012
clock icon 1 minute read

Recently China's third largest infant formula processer, Synutra International, has signed an investment deal with French dairy co-op Sodiaal/Euroserum. The deal worth €100m involves building two milk drying plants in the region of Brittany, France. Due to be operational by early 2015, the facilities will have the production capacity of up to 100,000t of whey and milk powder per year.

Previously in June another Chinese processer, Biostime, secured a 10 year financing and supply deal with Arla Foods in Denmark. This meant Biostime would receive 20,000t per year of infant formula powder for the next 10 years. The beverage producers, Wahaha Group who also supply infant formula, have begun to source produce from a Dutch milk powder company. Lately Swiss company Hochdorf have secured two infant milk formula orders in China, potentially supplying 1,000t annually by 2015.

Chinese companies are also investing in businesses in Oceania. China Investment Corp recently plans to raise $180m equity to double milk production in Australia's largest dairy farm. In New Zealand, permission by the NZ Supreme Court has been given to Shanghai based Pengxin Group Ltd to acquire 16 liquidated North Island farms (covering 8,000ha) for around $200m.

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