FrieslandCampina, a leading Dutch dairy cooperative, is among three EU dairy companies under investigation by China for alleged anti-dumping practices regarding dairy imports. The probe, initiated in August, also targets Elvir from France and Sterilgarda from Italy, reflecting escalating trade tensions between China and the EU. China’s Ministry of Commerce claims that these investigations are a response to EU plans to impose tariffs on Chinese electric vehicles. The inquiry will involve a sampling process to assess the impact of EU subsidies on dairy products, potentially affecting trade relations and market dynamics in the dairy sector.
FrieslandCampina, a Dutch dairy cooperative headquartered in Amersfoort, Netherlands, has been named by China as one of three European Union (EU) dairy companies included in an anti-dumping probe. China’s Ministry of Commerce announced on October 14 that the investigation will sample FrieslandCampina, along with Elvir from France and Sterilgarda Alimenti from Italy. The probe, initiated in August 2024, examines claims of anti-dumping practices by EU dairy exporters in China.
The Chinese government launched this investigation amid rising trade tensions, widely seen as a response to the EU’s decision to impose tariffs on imported Chinese electric vehicles. In June, China began a similar investigation into pork and pork-related products from the EU.
A Sampling Process Targeting Key Players
China’s Ministry of Commerce stated that the large number of EU companies subject to the investigation required a sampling approach. FrieslandCampina, Elvir, and Sterilgarda were selected based on factors such as export volume, product diversity, and geographic spread. These companies were chosen following the distribution of a sampling questionnaire on September 20, with responses received from the EU Delegation in China and multiple European producers.
The investigation focuses on subsidies provided to European dairy farmers under the EU’s Common Agricultural Policy (CAP). FrieslandCampina confirmed the inclusion of its units in the Netherlands and Belgium, along with affiliated companies, in the investigation.
In a statement released on October 15, FrieslandCampina said: “We are aware of the announcements by the Chinese Ministry of Commerce and will provide the necessary information as required, in compliance with relevant regulations.”
Elvir also confirmed its cooperation with Chinese authorities, stating that it has been working with officials since the investigation began.
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A Snapshot of FrieslandCampina
FrieslandCampina, one of the largest dairy cooperatives globally, generated €13.1 billion ($14.2 billion) in revenue in 2023, although it reported a 7.1% decline from the previous year. The company suffered a net loss of €149 million in 2023, following a profit of €292 million in 2022. With a presence in more than 100 countries, FrieslandCampina operates a diverse portfolio, producing milk, cheese, infant formula, and dairy-based beverages.
The cooperative plays a crucial role in supporting dairy farmers in the Netherlands and Belgium by offering fair pricing and access to global markets. However, it does not disclose country-specific performance data, including the size of its operations in China.
Trade Tensions Between China and the EU
China’s dairy investigation adds to a series of retaliatory trade actions. Earlier in October, China imposed provisional anti-dumping measures on brandy imports from the EU, following complaints from the China Liquor Industry Association that European producers were dumping products into the Chinese market.
The current investigation into dairy imports reflects ongoing friction between China and the EU, as both sides continue to escalate trade disputes. Brussels had previously announced plans to investigate subsidies on Chinese electric vehicles, prompting China to launch its own countermeasures targeting European agricultural products.
China’s Ministry of Commerce emphasized that the anti-dumping investigation is part of a broader effort to protect domestic industries. “Our investigation follows the regulations of the People’s Republic of China on anti-subsidies and reflects the need to ensure fair trade practices,” the ministry noted in its statement.
As trade relations between the two economies grow increasingly complex, FrieslandCampina’s response, along with that of Elvir and Sterilgarda, will be closely monitored. The outcome of the probe could set an important precedent for future trade relations between China and the EU.
