Fonterra to develop functional products through new partnership with China’s By-Health

By Douglas Yu

- Last updated on GMT

By-Health and Fonterra have signed a strategic cooperative partnership. Background image: iStock - meshmerize
By-Health and Fonterra have signed a strategic cooperative partnership. Background image: iStock - meshmerize

Related tags Nutrition Stock Fonterra

China’s By-Health has signed a strategic cooperative partnership agreement with Fonterra, according to a statement on CNINFO, China’s stock market information website.

The partnership is meant to help By-Health create new products, develop new functional supplements, and customize nutrition-related technologies, according to the statement.

However, this is not the first time By-Health has reached out to foreign organizations to step up global cooperation, according to the company’s website.

In December, By-Health signed the same partnership agreement with the Rowett Institute of Nutrition and Health, according to the company. Rowett is reported to be the first foreign research organization that By-Health partnered with.

The advantages of Fonterra

By-Health’s board of directors said in the statement that Fonterra has been running its business in China for over 40 years.

“Fonterra’s R&D center, located in Palmerston North, is one of the biggest of its kind in the world,” ​the board of directors said.

“Fonterra also has a line of world-class experts in dairy science, health and nutrition,”​ By-Health said.

Framework agreement

By-Health said there is a gap in China’s nutritional supplement market.

“The partnership will enable us to develop innovative protein-fortified products and other functional foods in order to fill the while space of our domestic nutrition market.”

However, By-Health’s board of directors said the contract of their partnership with Fonterra is a framework agreement at this point.

“The implementation of this contract doesn’t involve any risks from the market, policies, laws and security,”​ By-Health said. 

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