China Economic Review
Charting China’s changing economic terrain · Since 1990

Dutch dairy group quits China

November 24, 2004

Dutch dairy group Friesland Coberco, makers of the Dutch Lady brand, announced it was withdrawing from China, citing overcapacity in the Chinese dairy market and a lack of profits. The company said it had terminated production, marketing and sale of milk and yogurt drinks, transferring its activities to its local partner Tianjin Sino-Finnish. Although the company ranked third in South China's milk market, it did not make a profit in its eight years of operation, a Friesland spokeswoman told state media. She said that, with no prospect of the situation changing, the company had decided to leave the Chinese market.