Fonterra sets sight on Chinese dairy market

Eyeing China's growing market of milk drinkers, New Zealand's Fonterra Cooperative Group said it has agreed to invest US$107 million to obtain a 43% stake in Shijiazhuang Sanlu Group, a leader in China's powdered-milk market, The Wall Street Journal reported. Under the deal, Fonterra's investment will fund the creation of a joint venture focused on developing Sanlu's core businesses in liquid milk, powdered milk and yogurt products, through creating new brands and expanding distribution channels, Fonterra Chief Executive Andrew Ferrier told the Journal.