CHINA – Wattle Health, an Australian nutritional products maker has formed a joint venture with state-backed Chinese dairy company, Nouriz Fine Food to manufacture and sell a range of certified Australian organic nutritional dairy products in China.

The 50/50 joint venture with Nouriz, whose biggest shareholder China Animal Husbandry Group (CAHG) – a Beijing-based state-owned enterprise, will enable Wattle Health to expands its commerciality in the Asian country.

Under the agreement, the companies will source the organic nutritional dairy products from Corio Bay Dairy Group (CBDG), itself a joint venture between Wattle, Organic Dairy Farmers of Australia and Niche Dairy.

Wattle Health’s executive chairman, Lazarus Karasavvidis, said: “With this agreement we have secured an exceptional and experienced partner to market and distribute in China a range of certified organic premium milk powder products.

“Nouriz has a strong on the ground presence and deep experience in selling premium dairy products in the China market.

“With the Corio Bay spray drying facility on track for completion in the first half of 2020, the new JV will have access to a range of high-quality organic powders for sale into the China market.”

Nouriz (Shanghai) Fine Food Co chairman Liu Ning says Chinese consumers consider dairy products from Australia to be premium due to the quality systems from farm to market.

“China recognises Australia as a country that has very good farming land with a history of exporting high quality dairy products,” says Liu.

“Nouriz are excited to be collaborating with Wattle Health and Corio Bay Dairy to develop a range of premium organic consumer products from Australian organic milk for Chinese consumers.”

Given China’s strong demand for Australian milk-based products, Wattle Health has been keen to extend its influence within the country while building upon its core commitment to the Australian dairy farming sector.

In July last year, Wattle Health was given approval for general trade in China for its 1kg retail bag of pure Australian grass-fed milk powder.

The company has also agreed on a deal with Shandong  Weihai for the supply of Wattle Health’s conventional cow infant formula range.

Recently, the company unveiled that it is also finalising the acquisition of a majority stake in manufacturing facility Blend and Pack, a Victorian site that was one of the first to receive CNCA accreditation from Chinese authorities.