Shares in a2 Milk rallied after the company said it renewed exclusive import and distribution arrangements with a Chinese company for five years.
By early afternoon, the stock was up 20c or 3.3 per cent at $6.32.
China State Farm Agribusiness has been a2 Milk's strategic distribution partner in China since 2013 and is the exclusive import agent for its China label products, including a2's China label infant milk formula.
CSFA is a wholly owned unit of China National Agriculture Development Group Co (CNADC), which is also the parent company of China Animal Husbandry Group (CAHG), which holds a 25 per cent stake in Mataura Valley Milk.
A2 Milk owns the rest of Mataura Valley.