Mengniu, Arla target high-end dairy market in China

Attendees pose for a photograph at the launch ceremony of Arla Foods' new foodservice division, Arla Pro held at China Mengniu Dairy Co Ltd in Hohhot, Inner Mongolia autonomous region, June 20. [Photo/nmgcb]

Arla Foods, the Danish-Swedish dairy group has strengthened its presence in the Chinese high-end dairy market, in partnership with Chinese dairy giant China Mengniu Dairy Co Ltd.

The firm announced on June 20 that its new foodservice division, Arla Pro, officially started production in Inner Mongolia during the launch ceremony held at Mengniu Dairy's plant in Hohhot.

Bi Guochen, vice-mayor of Hohhot; Christian Dehlholm, Minister Counsellor of the Royal Danish Embassy in China; Liu Xinwei, vice-president Arla Foods China, and Yang Jilong, general manager of dairy products operation center at Mengniu Dairy attended the ceremony.

Arla is one of Denmark's largest brands, with a history of more than 130 years; we are very honored to bring our brand to millions of Chinese customers, said Christian Dhelholm, speaking at the opening ceremony.

In 2012, Arla Foods took a stake in Mengniu Dairy to help shape the high-end dairy market. It began to sell its cheese, butter and organic infant formulas in China the same year.

The cooperation between Mengniu and Arla has spurred a wide range of exchanges on cooperation, management philosophies and technology.

The municipal government of Hohhot attaches great importance to the partnership between the two dairy giants.

“We are excited to see the production of Arla Pro in Inner Mongolia, which means that advanced technologies and high-quality raw materials in Europe have gradually entered into the Chinese market,” said Bi Guochen.

Meng Dairy, as a leading player in the Chinese dairy industry has made a significant contribution to the economic growth of Hohhot, he noted, adding that mutually-beneficial cooperation will bring more quality dairy products to Chinese consumers.