FrieslandCampina is one of three major EU dairy corporations targeted by China for a sampling exercise amid an anti-dumping investigation that commenced in August. According to a statement released by China’s Ministry of Commerce on October 14, the Dutch company, alongside Elvir (France) Co. and Italy’s Sterilgarda Alimenti, has been singled out due to the substantial number of European companies involved in this inquiry.
The Ministry’s Trade Remedy Investigation Bureau indicated that this investigation arises from complaints regarding anti-dumping practices by EU dairy exporters. This action represents a broader retaliation from China against the EU, which sought to implement tariffs on Chinese electric vehicles. The tension escalated in June when China initiated its own probe into pork and related products imported from the EU, demonstrating the ongoing trade disputes between these regions.
In its detailed announcement regarding the dairy investigation, the Ministry emphasized that given the extensive participation of companies in this probe, the investigative body would employ a sampling method, as dictated by the anti-subsidy regulations of the People’s Republic of China.
Furthermore, a “sampling questionnaire” was distributed on September 20, with responses now collected from the EU Delegation in China as well as several EU producers. FrieslandCampina, along with Elvir and Sterilgarda, was selected based on various criteria, including export volume, product structure, and geographic distribution.
The investigation particularly impacts FrieslandCampina’s operations in the Netherlands and Belgium, including its affiliated companies. The firm has stated, “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.” The company has committed to providing any necessary information in compliance with relevant laws and regulations.
When queried about its business scale in China, FrieslandCampina clarified that it reports revenue at a group level rather than by individual countries. Notably, the company reported revenue of €13.1 billion ($14.2 billion) for 2023, marking a decline of 7.1% from the previous year, along with a net loss of €149 million—a significant drop from a profit of €292 million in the previous year.
Elvir and Sterilgarda also indicated that the investigation would encompass their affiliated companies. Elvir, specifically, noted that the probe pertains to the Common Agricultural Policy subsidies received by European dairy farmers, stating their commitment to fully cooperate with the Chinese authorities.
This latest scrutiny follows China’s recent implementation of “provisional anti-dumping measures” on EU-branded imports and continues a trend of investigations launched in response to claims of unfair trade practices.
In summary, the ongoing discord between the EU and China regarding trade practices, particularly in the food and beverage industry, highlights an essential aspect of current food and drink consumer trends. Companies like FrieslandCampina must navigate these challenges while remaining compliant with international regulations.
