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China-Netherlands joint venture for powdered milk

A decision that came to close the "milk war for children" opened after the case of the death of six newborns.

China-Netherlands joint venture for powdered milk

With the change in eating habits, which are increasingly characterized by a decided westernization, the Chinese have become large consumers of milk and milk products, and the demand for these products has been steadily increasing in recent years. More than butter, yoghurt and cheese, however, it is precisely milk that is in demand, so much so that sales of this food have increased from a turnover of 87 billion yuan in 2008 to 145 in 2013. 

Infant milk deserves a separate discussion, which is used more and more often both in the first months of the child's life and during and after weaning. The scandal of 2008, when a batch of infant formula produced in China caused the death of six newborns and sickened at least 300 others with kidney stones, is still very much alive in the memory of the Chinese, who no longer want to know about native brands and they are willing to do anything to get their hands on foreign powdered milk. 

The agent responsible for the damage to newborns was identified in melamine, a compound added to milk by unscrupulous producers to artificially increase its protein content. The powdered milk war has continued for years, affecting Hong Kong in particular, which has been overwhelmed by thousands of mainland Chinese in search of safe milk for their children. To remedy this state of affairs, the most important Dutch dairy company, Royal Friesland Campina, has announced a joint venture with the Chinese Huishan, aimed at producing infant milk. 

From the Sino-Dutch agreement, therefore, each of the contracting parties expects a considerable advantage: for Friesland Campina, a considerable expansion of its ability to penetrate the Chinese market, for Husian the opportunity to regain consumer confidence by offering the guarantee of a milk with a formula above all suspicion. In fact, Husian will supply the joint venture with the raw material, unpasteurized milk from its farms in the province of Liaoning, while the Dutch multinational will provide the formula and quality controls on the supply chain and on the final product.


Attachments: China Daily

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