August 8, 2007

China's Mengniu to export milk to Russia

In separate agreements concluded with the Russia-China Trade Promotion Council and Fresh Line Company on Aug 3, China's Mengniu Dairy Group will see greater export opportunities in the Russian market.

Under the agreement, Mengniu is expected to deliver its first batch of beverage milk products to Moscow in October. Market participants saw this as an achievement for China's largest dairy company in its bid to grow its export market.

China has recently surpassed Russia and Pakistan to become the third largest milk producer in the world after the US and India. Besides commanding a significant share of the domestic market, products of Mengniu are also exported to more than ten countries, including Singapore and the Philippines. The company also has a 50 percent share of the market for UHT milk in Hong Kong and Macau.