FrieslandCampina expands in Chinese market via partnerships

Want China Times, Staff Reporter 2014-12-20

The Royal FrieslandCampina - Huishan Diary joint venture signing ceremony
and press conference in Beijing, Oct. 8. (Photo/Xinhua)

Dutch dairy giant Royal FrieslandCampina is seeking to boost its presence in China through a new cooperation model with its Chinese partners, the China Economic Net reports.

Unlike most previous international training cooperation programs in which Chinese dairy professionals usually travel abroad to learn advanced technology, FrieslandCampina's cooperation program is characterized by bringing the Dutch dairy industry's operational ideas to China and introducing training and research programs to China's dairy industry, the Dutch firm's greater China Chief Executive, James Chiu, told the reporter.

A significant aspect of FrieslandCampina's involvement in China is its investment in setting up the Sino-Dutch Dairy Development Center (SDDDC). Created last November it aimed to help improve dairy production, safety and quality levels throughout the entire dairy chain in China. It did this through the cooperative efforts of Wageningen University & Research Center and the China Agricultural University.

Royal FrieslandCampina and China Huishan Dairy Holdings set up a joint venture on Oct. 8, which is a first between a Chinese and foreign dairy company.

FrieslandCampina will also invest 700 million yuan (US$113 million) for a 50% stake in Huishan's Xiushui dairy plant and will buy US$30 million worth of Huishan-shares on the Hong Kong Stock Exchange. The two companies have also decided to launch an infant milk formula brand.

On Dec. 2, the Dutch Dairy Expertise Center was launched in Beijing during the first anniversary celebration of the SDDDC, marking another important development in dairy exchanges between the countries.

Chiu said FrieslandCampina is no longer a dairy trading company but a partner that will help China's dairy industry grow and develop.

Since the SDDDC's establishment a year ago, it has trained a number of high-level professionals, set up a dairy school, and sent delegations to visit Dutch dairy sites several times.

Given that the Dutch dairy industry has undergone more than 140 years of development, its experience and technology is very advanced. In addition, the Netherlands' dairy industry is heavily reliant on exports, while China's is dependent on domestic demand, Chiu pointed out.

China's dairy industry has developed rapidly over the past few years and is expected to accelerate its development by pooling together domestic and foreign resources, according to Chiu.

FrieslandCampina has stepped up its efforts to develop its Chinese market by offering more choices of products and catering to local customers, Chiu added.