Bega Cheese to supply UHT milk to Chongqing General Trading in China
Australia-based dairy firm Bega Cheese has agreed to supply UHT milk to Chinese retailer Chongqing General Trading Group (CGTG).
The companies have signed a supply and distribution agreement, which is expected generate nearly $100m in revenues over the next five years.
Bega and CGTG expect the agreement to be the basis for a broader commercial relationship in the future.
The agreement follows an increase in consumption of milk and dairy products in the country.
Bega Cheese executive chairman Barry Irvin said: "We are confident our relationship will grow and that CGTG's many customers will be delighted with the excellent quality and range of Bega products they are able to purchase."
Bega Cheese has been exporting milk powder, infant formula and cream cheese to the Chinese market through its wholly owned subsidiary Tatura Milk Industries.
CGTG, which is a major retailer in South Western China, has a 50% retail market share across food and general merchandise.