June 29, 2007

More global dairy producers expected to invest in China

Global dairy producers had been investing in China's growing market in the recent years and more are expected to do so within the next decade, said Jim Begg, Chairman of the International Dairy Federation, at the 2007 Asia Dairy Market Seminar held in Shanghai recently.

Currently, major milk producers with substantial investments in China include Wyeth, Enfamil and Abbott. Japan's Meiji Dairies Corporation had also set up a branch in Shanghai and has started shipping milk to China. International Nutrition Company, providers of the Dumex brand of formula milk, will reportedly invest another RMB800 million in China.

Meanwhile, Chinese milk producers are also eager to tie-up with major global dairy producers. Mengniu, one of China's biggest milk producers, had already joined hands with Europe's biggest dairy manufacturer Arla Foods to capture a share of China's high-end milk powder market.

With increasing societal affluence, China's dairy markets will continue to be the focus of global dairy and milk producers in the years to come.

RMB1=US$0.1313 (Jun 29)