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Dutch Dairy Giant Plans Big Investment

27 April 2017

NETHERLANDS & CHINA - Dutch global dairy giant Royal FrieslandCampina is bullish on the growth potential of the market in China and plans to expand its investments and develop more Chinese-catered dairy products.

Last year, its China unit reported its performance independently for the first time in the company's earnings report. In 2016, Royal FrieslandCampina saw its sales revenues in China reach 5 billion yuan ($726 million), jumping 30 per cent year-on-year, and it expects a similar growth rate this year.

"The China market is huge and it changes rapidly," said Rahul Colaco, China president of Royal FrieslandCampina.

"Chinese consumers have an increasing higher requirement on values and a stronger desire of healthy products."

Mr Colaco said the group would continue to expand its product categories in China.

"This year, our Frico butter will officially land in China and the Chocomel chocolate milk that is popular in the Netherlands will enter the China market through cross-border e-commerce sites," he said.

"We are also planning to introduce adult milk powder products to China through cross-border e-commerce sites."

Last year, the output value of China's food industry reached 11.1 trillion yuan, an increase of 8.9 per cent year-on-year.

Meng Suhe, president of the Chinese Institute of Food Science and Technology, said food safety was the priority for the growth of China's food industry.

"Our ultimate goal is to pursue healthy and nutritious food products," Mr Meng said.

"China's food industry is now undergoing a comprehensive transformation period."

Royal FrieslandCampina, meanwhile, said it also aims to make more contributions to the Belt and Road Initiative.

Its first batch of goods arrived in China through the direct railway from Rotterdam to the city of Chongqing in Southeast China.

The dairy producer said it hopes to cooperate with more Chinese e-commerce websites, such as JD.com and Tmall.com, two of China's leading e-commerce shopping portals, to cover more consumers in the third- to six-tier Chinese cities, as well as rural areas.

In addition, the company is strengthening its research and development efforts in China, and its innovation center in the Netherlands has already allocated more resources for the development of products in the mainland.

TheCattleSite News Desk



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