Dutch global dairy giant Royal FrieslandCampina is bullish on the long-term growth of dairy market in China and plans to expand its business in third- to six-tier cities and rural areas. Together with Chinese retail giant Suning Commerce Group, it plans to launch online and offline stores to bring high-quality Dutch dairy products to rural areas in China next year. It will help improve sales of local agricultural products through online stores to city consumers…Full Article: China Daily June 2016

Key Points

  • In 2015, Royal FrieslandCampina (founded in 1871) had approximately EUR 1 billion (US$1.13 billion) worth of sales in the Chinese market.
  • Royal FrieslandCampina hopes to expand their market penetration in the provinces of Anhui, Henan, Hebei, and Gansu.

ChinaAg Comments

  • In March 2016, Baijiu liquor producer, Wuliangye, and Suning Holdings announced a collaboration agreement, the result of which would allow Wuliangye to distribute its products within Suning’s ~2,000 brick-and-mortar stores. Additionally, Wuliangye products will be sold on Suning.com.
  • In February 2014, Inner Mongolia’s Yili Group and officials from the Netherlands’ Wageningen University opened a dairy research and development facility. The opening ceremony for the new research and development center for Yili took place in Wageningen, the Netherlands.

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