Dairy exporters on a mission to succeed in Chinese market

Global food and dairy companies are making another round of big bets on China’s fast growing dairy sector, seeking to position themselves as safe alternatives after a lethal baby formula scandal burned the industry four years ago.

They are lured by projections of 10% annual growth for the sector and by Chinese consumers’ willingness to pay a premium for foreign brands as they remain wary of local brands’ safety records.

Just last week, China’s top-selling dairy firm Inner Mongolia Yili Industrial Group Co recalled six months’ worth of one brand of infant formula after government tests found it was tainted with mercury, a heavy metal that can cause neural damage if ingested.