June 20, 2012

China, Denmark to build joint dairy centre

China and Denmark will unveil an in-depth cooperation in the dairy sector by establishing together a dairy technology facility.

China will draw on Denmark's dairy experience to promote the development of domestic dairy industry, the Ministry of Agriculture said Saturday (June 16).

China will also introduce Denmark's pasture management system and dairy professionals, according to the ministry.

A slew of Chinese and Danish companies had signed cooperation agreements during President Hu Jintao's visit to the Nordic country from Thursday to Saturday.

The agreements included an investment pact signed between Danish-Swedish dairy producer Arla Foods and Mengniu Dairy Company, a unit of Cofco Corporation, China's largest food manufacturer and trader.

According to the deal, Arla Foods will invest HKD2.2 billion (US$283.5 million) for a 5.9% stake in Mengniu, according to a statement on the Cofco's website.

Arla Foods will get involved in Mengniu's daily operations, send professionals to work with Mengniu employees and help Mengniu update dairy technologies and improve its management system, Cofco Chairman Ning Gaoning said in the statement.