Yashili International along with European dairy producers Arla and Danone have entered into global strategic cooperation agreement.
Signed at the opening of Yashili's new infant formula plant at Pokeno on November 6, the agreement will see the three companies work closer together in supplying products into Arla and Danone's markets.
"It is a significant agreement between these two great dairy producers who are each committed to the highest standard of food quality and safety," Yashili International Holdings president Lu Mingfang said.
Yashili New Zealand is a subsidiary of Yashili International Holdings Ltd and Mengniu Dairy Co. The three companies have a history of collaboration with Danone acquiring 25 per cent of Yashili last year while Arla Foods has a joint venture company with Mengniu Dairy Co called Arla Mengniu.
Mingfang described the agreement as an "eco-system project" where the Pokeno plant can be into its global sourcing strategy.
"Today we have entered into a preliminary agreement with Danone to provide... supply into Danone and at the same time we are also working with Arla on the same thing on the upstream and we are going to work together."
He said it would ensure sure their products wereup to the standard they wanted and it would set the similar global standard and allow them to supply the product to their partners.
Image: Yashili International Group chief executive Lu Minfang (right) says their new agreement with Danone and Arla will allow the three companies to work closer together. Next to Mingfang from L to R are Yashili New Zealand general manager William Zhao and China Mengniu Dairy Co chief executive and chairwoman of Yashili International Sun Yiping.