FrieslandCampina sees growth in Chinese dairy market

Dutch global dairy giant Royal FrieslandCampina said it is bullish on the long-term growth of the dairy market in China and committed to help promote the quality and safety of dairy products in the country.

In November 2013, Royal FrieslandCampina, China Agricultural University and Wageningen University and Research co-founded the Sino-Dutch Dairy Development Center, an international cooperation platform that aims to share the industrial chain growth experience from the Netherlands and promote the development of the dairy industry in China.

In the past four years, Royal FrieslandCampina has contributed about 32 million yuan ($4.83 million) to the center. The center has published nearly 30 reports and conducted 20 research projects about the dairy industry.

Now the center has 12 partners. The latest of these is the Inner Mongolia-based Yili Dairy Group - the largest dairy group in Asia - who joined the center last week.

The center also sponsored seven Chinese graduate students to take doctorate classes in the Netherlands, and it supported five scholars from the two countries to visit and communicate in their counterpart countries. The center has also helped to train more than 500 dairy professionals.

Rahul Colaco, chairman of SDDDC Supervisory Board and president of the FrieslandCampina China Business Group, said SDDDC has been a unique organization that builds on the private-public partnership model.

"Besides playing a leading role in the setting of agendas and activities, FrieslandCampina has also contributed significant time and resources to the center. We have had quite a big impact over the last few years," he said during an interview in Beijing. "We have been very open about sharing our 'grass to glass' knowledge and approach with many industrial players. China's dairy industry is going through an evolution. We have come a long way and addressed some challenges, and I believe China's dairy industry is well on its way to become world-class."

Currently, China's per-capita consumption of dairy products is 36 kilograms a year, while it is about 50 kg in Japan and South Korea. Industry experts said China's dairy market is expected to grow significantly, following the country's two-child policy.

"Rural areas and second- and third-tier cities in China are far from the level of dairy consumption they should have. They should keep growing and boost total consumption," said Zhang Liebing, associate professor at China Agricultural University.