Two agri co-ops are starting a dairy animal feed joint venture in China to leverage existing market knowledge, insights, technologies and research capability.
US based Land O’Lakes and Netherlands’ Agrifirm have more than 20 years of market experience in China. The new business – Agrilakes – will initially be based in Agrifirm’s existing manufacturing plant in Tianjin, with plans to build a new dairy premix and specialty plant on the adjacent property.
The venture has already been approved by the boards of directors of both co-operatives and is currently pending regulatory approvals. The two co-ops hope to address the demand for enhanced animal nutrition and productivity.
“With this new investment in China alongside Agrifirm, we are continuing Land O’Lakes’ successful international commercial growth strategy focused on partnering with locally-successful companies and working together to drive market expansion,” said Jerry Kaminski, executive vice president and chief operating officer of Land O’Lakes. “Thanks to Agrifirm’s established infrastructure and reputation in China, paired with Land O’Lakes’ strong research and technology expertise, we are confident this new joint venture is well-positioned to help grow both companies.”
Dick Hordijk, chief executive of Agrifirm, added: “Agrifirm is proud to bring more than 100 years of experience in the feed and dairy business, and deep experience in China, to this new joint venture. We look forward to leveraging the knowledge, experience and products of both Agrifirm and Land O’Lakes to strengthen our China market presence and help China’s dairy farmers on the road to success.”
Land O’Lakes is already using its subsidiary businesses Purina Animal Nutrition and WinField® United crop protection to help improve dairy productivity in China. Both companies are already operating in China through subsidiary businesses.
Land O’Lakes runs a training facility in China, the Dairy Farming Institute, in partnership with Nestlé. Agrifirm subsidiary Nuscience has been in China under the brand LVSAI for 20 years.