Fonterra has got approval from the Chinese baby and child food company Beingmate’s board to set up a joint venture (JV) that will purchase and run the Darnum milk processing plant in Australia.

This will lead to further integration of Fonterra with Beingmate, following its purchase of an 18.8% stake in China’s giant infant formula manufacturer.

Fonterra CEO Theo Spierings said: “The partnership will create a fully integrated global supply chain from farm gate direct to China’s consumers, using Fonterra’s milk pools and manufacturing sites in New Zealand, Australia and Europe.”

Beingmate will own 51% of the JV, with Fonterra holding the remaining 49%. Fonterra will manage and run the plant.

Spierings went on to say: “Our partnership with Beingmate is already strengthening the presence of our Anmun infant formula brand. Distribution through Beingmate is under way, with the first consignment landed in China in June.”

Beingmate shareholders will vote on the board’s decision on 16 November.