CHINA - FrieslandCampina, one of the largest Dutch dairy companies, is among three major EU dairy firms selected by China's Ministry of Commerce for a sampling exercise in an ongoing anti-dumping investigation. 

The Chinese government launched the probe in August, targeting European Union (EU) dairy exporters over allegations of dumping products in China at unfair prices.

The announcement, made on 14 October by China's Trade Remedy Investigation Bureau, named FrieslandCampina, France’s Elvir, and Italy’s Sterilgarda Alimenti as the key companies under scrutiny. 

The investigation, which includes affiliated companies, is part of China’s broader response to EU policies, specifically the EU’s recent plan to impose tariffs on imported Chinese electric vehicles.

In its statement, the Chinese Ministry noted that the selection of these companies was based on factors such as export volume, product structure, and geographical distribution. 

This step follows the issuance of a "sampling questionnaire" on 20 September, which was distributed to EU producers, and responses were received from the EU delegation and various exporters.

FrieslandCampina, which operates in both the Netherlands and Belgium, acknowledged the investigation and confirmed its commitment to cooperating with the Chinese authorities. The company has reiterated that it will provide any necessary information as required by law. 

However, FrieslandCampina declined to disclose specific financial data related to its Chinese operations, only confirming its group revenue for 2023 stood at €13.1 billion ($14.2 billion), a 7.1% decrease from the previous year, resulting in a net loss of €149 million (US$161.7 million).

Elvir and Sterilgarda have also confirmed their participation in the probe. Elvir emphasized that the investigation concerns subsidies granted to European dairy farmers under the EU’s Common Agricultural Policy, and it too pledged full cooperation with the Chinese authorities.

This anti-dumping investigation is seen as part of China’s broader retaliatory measures against the EU. 

It follows a similar investigation launched earlier this year targeting EU pork imports, as well as the imposition of provisional anti-dumping measures on EU brandy imports. These actions came shortly after the EU began investigating alleged subsidies provided by China to its electric vehicle industry.

FrieslandCampina's selection for the sampling exercise also comes amid rising dairy prices in Europe. The Dutch company recently announced an increase in its guaranteed price for farm milk, raising it to €53.50 (US$58.07) per 100 kilogrammes for October 2024, reflecting growing market demand.

As the investigation continues, stakeholders and companies involved are expected to cooperate with the Chinese authorities, with the probe potentially leading to tariffs or other trade remedies against EU dairy exporters if anti-dumping violations are confirmed.