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FrieslandCampina Under Scrutiny as China Targets EU Dairy in Anti-Dumping Investigation

China 17.10.2024
Source: DairyNews.today
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FrieslandCampina, the prominent Dutch dairy company, is at the center of an escalating trade dispute as China intensifies its anti-dumping investigation into EU dairy imports. The Chinese Ministry of Commerce announced on October 14 that FrieslandCampina, alongside France’s Elvir Co. and Italy’s Sterilgarda Alimenti, will undergo a sampling exercise as part of a broad investigation launched in August.
FrieslandCampina Under Scrutiny as China Targets EU Dairy in Anti-Dumping Investigation
China’s probe, focused on whether EU dairy exporters are engaging in anti-dumping practices, follows a series of retaliatory measures in response to the EU’s plans to impose tariffs on Chinese electric vehicle imports. This latest action mirrors similar steps taken by China earlier in the year, including an anti-dumping investigation into pork imports from the EU, signaling heightened trade tensions between the regions.

The Ministry of Commerce cited the substantial number of EU dairy companies involved as the rationale behind selecting a sampling approach. “Due to the large number of companies registered to participate in the investigation, and in accordance with the regulations of the People’s Republic of China on anti-subsidies, the investigating authority has decided to conduct the anti-subsidy investigation using a sampling method,” stated the Ministry's Trade Remedy Investigation Bureau.

A sampling questionnaire, distributed on September 20, received responses from both the EU Delegation in China and several EU producers, resulting in the selection of FrieslandCampina, Elvir, and Sterilgarda based on criteria such as export volume, product structure, and geographical distribution. FrieslandCampina’s Dutch and Belgian operations, as well as affiliated entities, are included in the sampling.

FrieslandCampina acknowledged the announcement in a statement issued on October 15, affirming its willingness to cooperate: “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. Naturally, we will provide the necessary information related to the investigation, if requested, in accordance with relevant laws and regulations.”

Investment Monitor inquired about FrieslandCampina’s revenue specifics in China; however, the company declined to break down financials by country. FrieslandCampina reported a 2023 revenue of €13.1 billion ($14.2 billion), a decrease of 7.1% year-over-year, and a net loss of €149 million—down from a €292 million profit in the prior year.

The investigation also extends to affiliated entities of Elvir and Sterilgarda. Elvir indicated that the probe centers on Common Agricultural Policy (CAP) subsidies granted to EU dairy farmers. “Our company will cooperate fully with the Chinese authorities, as it has done since the beginning of this investigation,” Elvir stated in response to the inquiry.

China’s intensifying trade measures against the EU dairy sector add to a growing list of sanctions targeting EU imports. Earlier this month, China imposed provisional anti-dumping tariffs on brandy imports from the EU, following allegations by the China Liquor Industry Association of dumping practices.

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