FrieslandCampina is one of three EU dairies named by China for sampling as part of an anti-dumping investigation launched in August.
The Chinese Ministry of Commerce identified the Dutch giant, together with Elvir (France) Co. and Sterilgarda Alimenti in Italy, in a statement issued yesterday (October 14).
In the statement from the Commerce Ministry’s Trade Remedy Investigation Bureau, China said the three companies were chosen because of the “large number” of EU companies under investigation.
China started the investigation in Augustaccusing EU dairy exporters of anti-dumping practices on products arriving in the Asian country. It was seen as China’s latest retaliation to EU plans to impose tariffs on imported Chinese electric vehicles.
The first retaliation began in June, when China launched a similar investigation on pork and pork-related products imported from the trading bloc.
In a lengthy explanation of the dairy investigation, the ministry said yesterday: “Due to the large number of companies registered to participate in the investigation, in accordance with the relevant provisions of the ‘Regulations of the People’s Republic of China on Anti-Subsidy’ and considering the actual situation of the case, the investigating authority has decided to conduct the anti-subsidy investigation using sampling method.”
It added that a “sampling questionnaire” was issued on September 20 and responses have now been received “from the EU Delegation to China and several EU producers (exporters)”.
FrieslandCampina, Elvir (France) and Sterilgarda were selected based on these answers “taking into account various factors such as export volume, product structure and geographical spread”.
In the case of FrieslandCampina, the sample concerns the business units in the Netherlands and Belgium, as well as “affiliated companies”.
The Dutch company responded today (October 15): “FrieslandCampina is aware of the announcements made by the Chinese Ministry of Commerce regarding the anti-subsidy investigation into certain dairy products imported from the EU, both on August 21 and more recently.
“We will of course provide the necessary information regarding the investigation upon request, in accordance with relevant laws and regulations.”
Requested by Just eat To quantify the size of FrieslandCampina’s activities in China, the company only reports at group level and not per individual country.
According to FrieslandCampina’s annual report, sales in 2023 amounted to €13.1 billion ($14.2 billion), a decline of 7.1% compared to the previous twelve months. It posted a net loss of €149 million, compared with a profit of €292 million a year earlier.
Meanwhile, Chinese dairy sampling also includes “affiliates” of both Elvir (France) and Sterilgarda. Just eat has also asked these companies for a response.
Elvir said the China “investigation concerns Common Agricultural Policy subsidies granted to European dairy farmers.”
It added: “Our company will cooperate fully with Chinese authorities, as it has done since the beginning of this investigation.”
Earlier this month, China introduced measures “provisional anti-dumping measures” on the import of brandy from the EU.
In January, China started an investigation in claims by the China Liquor Industry Association Brandy imports from the EU were dumped in the country. It came months later Brussels launched its anti-subsidy investigation into Chinese electric vehicles.
“FrieslandCampina in the spotlight as China embarks on EU dairy investigation” was originally created and published by Just eata brand owned by GlobalData.
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