Huishan Dairy has lost a lot of money

Huishan Dairy, FrieslandCampina's Chinese partner, has lost millions of euros. During a financial audit, the company should have had 379 million euros in cash on paper. Of this, however, only 61 million euros turned out to be present.

The Chinese company reported Tuesday, June 6 to the stock exchange authorities in Hong Kong, and says it does not know where the money has gone. A forensic accountant has now been called in to investigate the case. 

Friesland Huishan Dairy
FrieslandCampina and Huishan Dairy have shared interests in the joint venture: Friesland Huishan Dairy. Together they have a dairy factory with 400 employees in the Chinese city of Shenyang.

Previously discredited
It is not the first time that FrieslandCampina's Chinese partner has been discredited. In April it was reported that Huishan Dairy would be virtually bankrupt. For example, the share of the dairy giant was shut down. Also in March, Ge Kun, the financial director, suddenly went on sick leave. She has been missing since then. Other drivers are also got off.

Huishan Dairy reportedly has billions of euros in debt and only has one board member. Jan-Willem ter Avest, spokesperson at FrieslandCampina, says in a response that 'the statement remains in force.' He refers to the statement from March, in which the dairy says that the day-to-day management of the joint venture in Dutch hands is.

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.