Meiji to mass produce milk for Chinese market

Japanese confectioner and dairy products maker Meiji Co will sell locally produced pasteurized milk and yogurt in China from December 2013, following its recent baby formula pullback from the Chinese market.

Tins of Meiji Cherish baby milk powder are displayed for sale at a supermarket in Qingdao, east Chinas Shandong province, 25 February 2013. [Photo/icpress.cn]

It is the first time that a foreign dairy company will mass produce pasteurized milk and yogurt for the Chinese market.

According to China Business News, the company will purchase milk from a farm in Hebei province and process it in Suzhou, Jiangsu province. Meiji does not plan to establish a dairy farm in China.

Meiji-branded pasteurized milk and yogurt will be priced higher than similar domestic products.

For instance, 950 ml will be priced between 20.8 yuan ($3.41) to 22.8 yuan. In comparison, the domestic Bright Dairy's UBest of the same quantity sells for less than 19 yuan in supermarkets.

However, experts said local consumers may switch to foreign brands because they believe foreign companies have better quality controls.

Meiji stopped selling baby formula in the Chinese market in October because the cost of importing Australian milk has been rising year-on-year.