JV with Fonterra brings expertise to formula firm

New Zealand company's huge scale to 'enhance Beingmate's supplies'

New Zealand's Fonterra Co-operative Group Ltd, the world's largest dairy exporter, will form a partnership with Hangzhou-based Beingmate Baby & Child Food Co Ltd to tap the lucrative formula retail market in China.

Fonterra said it will invest $514 million in the arrangement to create "a fully integrated global supply chain from the farm gate to China's consumers", using Fonterra's milk pools and production sites in New Zealand, Australia and Europe.