Dutch dairy co-operative Royal FrieslandCampina has entered into exclusive talks with China Huishan Dairy Holdings to create joint venture (JV) to produce, market and sell infant milk formula in the People’s Republic of China.
Both the firms intend to create a JV to operate a fully integrated infant milk formula supply chain in China, while the companies will continue to run their existing infant milk formula businesses separately.
In the JV, Huishan will provide its high-quality raw milk from its own dairy farms in China. The JV will use this raw milk to produce and market infant milk formula in the country.
The companies believe that the proposed JV will benefit from their respective production, sales and marketing capabilities.
In China, FrieslandCampina is known for its premium brand in infant formula Friso, and Huishan is a vertically integrated dairy company in the country.
Image: FrieslandCampina and Huishan to create JV for infant milk formula in China. Photo: courtesy of Royal FrieslandCampina N.V.
