Agrifirm has set up a joint venture with the American cooperative giant Land O'Lakes for the sale of feed to dairy farms in China. The new joint company (Agrilakes) will initially be located at LVSAI's production location in Tianjin, an Agrifirm subsidiary.
Land O'Lakes (as a cooperation partner) is a big fish for the Agrifirm feed cooperative. The cooperative is one of the leading food companies in the United States, with annual sales of $2018 billion in 15. In addition to the United States, Land O'Lakes operates in more than 60 countries.
Via Agrilakes, the 2 companies want to gain market share in the growing Chinese market. To this end, both companies will combine market knowledge, insights, technologies and research capabilities. There are also plans to build a new factory for premixes and dairy specialties.
Developing dairy farms
"Agrifirm has more than 20 years of market experience in China and this joint venture enables us to successfully further implement our growth strategy," said Dick Hordijk, CEO of Agrifirm, in a statement. The formation and financing of Agrilakes has been approved by the boards of directors of both cooperatives and is now pending approval by the appropriate competition and regulatory authorities.
"The dairy farms in China are growing and modernizing", Agrifirm reports. "This development is accompanied by new working methods, which, according to the company, promote the demand for better feed for the dairy cattle and therefore higher milk production."
Active in China
Agrifirm has been active in China for more than 20 years with its subsidiary LVSAI. LVSAI operates 2 factories for feed and premixes for young animals and sells feed ingredients and feed additives for, among others, pigs. In China, Land O'Lakes uses capabilities and proprietary products of its subsidiaries Purina Animal Nutrition and WinField United (crop protection).
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