On June 15, 2012, with top officials of China and Denmark present, Mengniu Dairy signed the cooperation agreement with Arla Foods, EU’s largest dairy company, in Copenhagen, capital of Denmark. According to the agreement, Arla Foods will invest $HK 2.2 billion in Mengniu Dairy and become its second largest shareholder, holding 5.9% of its shares. It will also take a substantial part in daily operation of Mengniu Dairy, introducing the management system of dairy farms of Denmark and the Arlagaaden model to the upstream quality control of Mengniu Dairy. Experts from the two sides will work together to improve the quality control system for dairy farms and production HACCP’s. New technologies will be introduced to increase the unit production. More qualified dairy farm management teams will be trained. This alliance is very promising in the world’s second largest dairy market. Each side has a lot to look forward to.
Arla Foods was established in 1863. It is the world’s largest organic dairy product supplier. Its Arlagaaden quality control system is recognized globally. It has over 20,000 employees including more than 200 R&D experts. Its products are popular in over 100 countries. Its yearly turnover in 2011 reached DKK 50 billion, amounting to $9.32 billion, ranking the 5th of the world.
