BEGA Cheese has signed a supply agreement for Bega-branded UHT milk with one of China’s leading retailers, Chongqing General Trading Group (CGTG).
The agreement is expected to generate $100 million dollars over five years for the Australian dairy company, with Bega and CGTG planning “a broader commercial relationship” down the track.

The Bega brand has been sold in China since 2000 and Bega Cheese through its wholly-owned subsidiary Tatura Milk Industries is a major Australian exporter of high value milk powder, infant formula and cream cheese to the Chinese market.

Bega executive chairman Barry Irvin was in Chongqing – one of the fastest growing regions in China – for the signing of the deal, along with CEO Aidan Coleman and general manager sales and marketing Paul van Heerwaarden.

The companies were initially brought together by the Victorian Department of Environment and Primary Industry (DEPI), and Mr Irvin and Mr Coleman acknowledged the efforts of Victorian Minister for Water, Agriculture and Food Peter Walsh, the DEPI and former Queensland government Minister Craig Wallace for their help in the process.

Chairman of CGTG Dr He said his company was excited to partner with an iconic Australian company like Bega Cheese.

“China’s consumption of milk and dairy products is increasing rapidly. CGTG is delighted to work with Bega to satisfy that need,” Dr He said.

Chongqing has a population of 32 million people and GDP growth in 2013 of 12.3%. CGTG is the leading retail group in the region, with a 50% retail market share across food and general merchandise.

Source: The Australian Dairyfarmer