BRIGHT Food (Group) Co Ltd, which found traces of dangerous chemicals in its dairy products made outside Shanghai, said the ongoing milk scandal faced by the dairy industry will not hold back its plans to extend cross-provincial cooperation.
But the firm assured customers that keeping a tight control on product quality throughout the purchasing and manufacturing process will be its top priority, said Ge Junjie, vice president of Bright Food.
"We must continue to form strategic partnerships with agriculture companies nationwide in order to strengthen our core business," Ge said. "It's not only about boosting sales but also about combining advantages of both parties and create a win-win business model," he added.
Enhancing partnership with farmers and agriculture firms in other provinces and regions is crucial to help boost Bright Food's sales. It also means the group could benefit from well-established national resources to streamline its business chain while managing surging costs.
Last year, one third of Bright Food's 66 billion yuan (US$9.7 billion) revenue was contributed by income outside the Yangtze Delta. As one of China's leading food conglomerates, Bright Food has cooperated with 180 companies in 20 provinces, with total investment estimated at 6 billion yuan.
Bright Food will sign 11 additional agreements with firms in provinces including Heilongjiang and Jiangxi as well as Xinjiang Uygur Autonomous Region to work jointly sourcing, manufacturing of various agricultural products such as tea, organic rice and dried vegetables.
Bright Food was set up in 2006 via the consolidation of eight major local food companies involved in the dairy, supermarket, rice wine, logistics and property business.
The group also said it would raise its stake in a major listed unit to stabilize the flagging stock market.