Danisco expands cultures capacity into China

Nutrition and health ingredients company Danisco announced that it is expanding their production of Live Culture Inoculant (LCI) cultures in China to meet growing demand in the region for the fresh dairy and dietary supplement markets. The company has purchased a food processing plant north of Beijing, close to some major customer locations, and will convert it into a state-of-the-art blending and packaging production platform to serve the region, with commissioning expected in the fall of 2012.

The investment is part of a global Danisco multi-year capacity expansion programme for freeze-dried LCI cultures.

“This is a significant investment by Danisco, to expand our growth in China and it is evidence of our strong long-term commitment to the Chinese market and our customers,” said Yongjing Li, president of the company’s unit in China. 
No figures were provided for the investment, but Danisco said the expansion means that they are well-positioned to meet increasing market demand.
“This is a major step for our business,” continues Fabienne Saadane-Oaks, president, Danisco BioActives.

“China is already a significant market for our YO-MIX fresh dairy cultures. In addition, this new facility also will support our HOWARU probiotics production for dietary supplements, food and beverages.  With increasing regional customer demand for both products, we expect to see continued growth for the foreseeable future,” Mr Saadane-Oaks added.

This expansion sustains the growth commitment of DuPont, which acquired Danisco in May 2011, and Danisco’s food ingredients are now part of the DuPont Nutrition & Health business.  “This investment builds on our market leadership position and is aligned with our strategic target of creating value through organic and acquisitive growth,” comments Tony Su, president, DuPont Greater China.  “Notably, the expansion confirms the company’s long-term commitment to the cultures market in China.”

Rising market growth for dairy
Dairy products, especially yoghurt, enjoy a healthy image in China.  According to market research company Euromonitor, the future growth of fermented dairy retail sales in China is estimated to achieve a 12 per cent CAGR in the period 2011 to 2016 due to market drivers such as a growing middle class, urbanisation and the adoption of packaged convenience food. In addition, the government is working on guidelines to increase calcium intake in the diet.