Fonterra's China venture starts

Fonterra's joint venture with leading Chinese dairy company San Lu formally got under way at a weekend ceremony in Shijiazhuang, south of Beijing.

It followed the completion of Chinese Government approvals for the deal and settlement of Fonterra's purchase of a 43 per cent stake for US$107 million ($173 million).

Fonterra China managing director Bob Major said the dairy market in China was expected to double in size by 2010.