Fonterra a giant dairy in New Zealand has announced that it has an intention to take a 20% stake in Beingmate which is one of the biggest milk processors in China.
The tie-up may help to create create a global supply chain planned at China’s market using Fonterra’s milk manufacturing partners in Australia and Europe.
The tie-up would also help Fonterra to increase its share of China’s large and lucrative infant diary food market.
China believes on New Zealand for almost all its imports of milk powder.
Theo Spierings the Chief Executive of Fonterra said that “The partnership would be a “game changer” and that it would provide the New Zealand firm with “a direct line into the infant formula market in China”.
He further added, “Fonterra would work with Beingmate “to evaluate mutual investments in dairy farms in China”.