Valio receives Chinese export permit for infant formulas

Valio has secured an export permit from the Chinese authorities to gain access to the country’s growing infant formula market.

Valio category senior vice-president Jussi Mattsson said: “We want to strengthen our position in China as a trusted supplier of high-quality industrial ingredients. At the same time, we are building a consumer product market.

“Naturally, we are looking to generate new revenue, but profitable growth does not happen in the blink of an eye. Valio is, as of yet, an unknown brand in China, so there is a lot to do. In the first phase, we are engaging in negotiations with potential customers.”

With the new permit, Valio will be able to export its powdered and ready-to-drink (RTD) infant formulas to China. The powdered offering is manufactured at its Lapinlahti plant, while the RTD formulas are made at the Turenki plant in Finland.

Since the 1990s, Valio has been exporting its milk powders and demineralised Valio Demi whey powders for industrial use in China.

It also began exporting consumer-packaged milk powder to the country in 2017.

In addition, certain Valio production plants secured approvals to manufacture milk powder, cheese and butter for the Chinese market.

Mattsson added: “Competition for consumer attention between dairies is heated. In China, online stores, markets and baby supply store shelves are filled with choices from dozens of manufacturers.

“Valio’s strengths include Finland’s pure natural environment and extremely high-quality milk, provided directly by our owners, 5,000 Finnish dairy farms. Chinese parents want, most of all, safe food for their children.”