FrieslandCampina is one of three EU dairy companies named by China to undergo a sampling exercise as part of an anti-dumping probe launched in August.
China’s commerce ministry identified the Dutch giant, along with Elvir (France) Co. and Sterilgarda Alimenti in Italy, in a statement issued yesterday (14 October).
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In the statement from the Ministry of Commerce Trade Remedy Investigation Bureau, China said the three businesses had been singled out because of the “large number” of EU companies coming under the investigation.
China started the probe in August, accusing EU dairy exporters of anti-dumping practices on products arriving in the Asian country. It was regarded as the latest retaliation by China to plans by the EU to impose tariffs on imported Chinese electric vehicles.
The initial retaliation began in June, when China launched a similar probe on pork and pork-related products imported from the trading bloc.
In a lengthy explanation on the dairy probe, 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-subsidies’, and considering the actual situation of the case, the investigating authority has decided to conduct the anti-subsidy investigation using a sampling method.”
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By GlobalDataIt added that a “sampling questionnaire” was issued on 20 September and responses have now been received “from the EU Delegation in China and several EU producers (exporters)”.
FrieslandCampina, Elvir (France) and Sterilgarda have been selected based on those responses “taking into account various factors such as export volume, product structure and geographical distribution”.
In the case of FrieslandCampina, the sampling affects the company’s units in the Netherlands and Belgium, along with “affiliated companies”.
The Dutch firm said in response today (15 October): “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 21 August and more recently.
“Naturally, we will provide the necessary information related to the investigation, if requested, in accordance with relevant laws and regulations.”
Asked by Just Food to quantify the size of FrieslandCampina’s business in China, the company said it only reports at a group level and not by individual countries.
Revenue in 2023 amounted to €13.1bn ($14.2bn), a drop of 7.1% on the previous 12 months, according to FrieslandCampina’s annual report. It delivered a net loss of €149m, compared to a €292m profit a year earlier.
Meanwhile, the China dairy sampling also includes “affiliated companies” of both Elvir (France) and Sterilgarda. Just Food also asked those businesses 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 the Chinese authorities, as it has done since the beginning of this investigation.”
Earlier this month, China imposed “provisional anti-dumping measures” on the imports of brandy from the EU.
In January, China launched an investigation into claims by the China Liquor Industry Association EU brandy imports were being dumped into the country. It came months after Brussels launched its anti-subsidy investigation into Chinese electric vehicles.
