October 17, 2012

Mengniu Dairy, Arla Foods establish RMB220 million dairy knowledge centre in China





China Mengniu Dairy and Denmark's Arla Foods have signed an investment agreement of RMB220 million to establish a "Sino-Danish Dairy Product Technology Cooperation Centre" in Beijing, China.


The exchanges and cooperation between the two companies will be based on bilateral cooperation projects between China's and Denmark's agriculture departments. This is of especial relevance to the China market as dairy and pork products are the bulk of Danish agro-products exported to China.


Through the agreement, innovative knowledge sharing and cooperation between both parties helps to raise the quality standards of China's dairy products on international platform to match EU's food safety standards.


In accordance to the agreement, Danish expertise and experience of their local supply chain from farmland to end-consumer will be introduced to China. The two parties will expand their cooperation framework from dairy farming and resource management to dairy products production management, R&D, client and consumer-related activities.


Regarding dairy farming and resource management, Mengniu Group will build modernised dairy ranches in Fuyuan Livestock, which will adopt Denmark's quality food safety management and monitoring system, including the production model from Arla Foods. 

The cooperation projects also include risk identification and control, milk collection and testing, milk storage and quality control, animal health prevention and control, establishment of analysis and monitoring management.
The memorandum signed on September 5, 2012, was witnessed by officials from the Ministry of Agriculture of China and their Danish counterparts in Denmark.


Arla Foods is one of the largest and most time-honoured dairy companies of Europe. It is also the largest organic dairy product supplier of the world. Established in 1863, it is headquartered in Copenhagen, Denmark. Arla Foods became the second largest shareholder of Mengniu Dairy in June 2012, holding 5.9% shares, valuing RMB1.8 billion.

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