a2 Milk Expands China Partnership with State Farm to Boost Cross-Border Growth

About a2 Milk Company Ltd

Founded in 2000 and headquartered in Auckland, The a2 Milk Company (ASX: A2M) is a global dairy nutrition business specialising in products containing only the A2 beta-casein protein, which are designed to support easier digestion and consumer wellness. The company has established a strong presence across Australia, New Zealand, China, and the United States, selling premium milk, infant formula, and nutritional powders.

The company’s brand portfolio — led by a2 Platinum, a2 Milk, and the newly launched a2 Genesis — positions it as one of the fastest-growing names in the premium infant and adult nutrition sector. In China, a2 Milk has built a robust distribution network and is recognised among the top four brands in the ultra-premium IMF category.

The newly announced partnership expansion with China State Farm (CSFA) signals a pivotal evolution in a2 Milk’s China strategy, allowing the company to directly participate in the cross-border English label market, a segment that has shown continued resilience and growth despite broader industry normalisation.

Strategic Expansion with China State Farm

Under the expanded agreement, CSFA — a subsidiary of China National Agriculture Development Group Co., Ltd (CNADC) — will act as exclusive import agent and master distributor for a2 Milk’s English label infant formula range. The initial rollout will begin with a2 Genesis, followed by other products including a2 Platinum, over the medium term.

This arrangement builds upon a relationship that began in 2013, when CSFA became a2 Milk’s exclusive importer and distributor for China label products. Over the past decade, that collaboration has grown into one of the most successful foreign–domestic joint efforts in China’s premium dairy market. CSFA’s distribution network now spans over 100 distributors, servicing approximately 30,000 mother-and-baby stores and major eCommerce platforms, helping a2 secure a top-tier position among China’s ultra-premium infant formula brands.

The expanded partnership allows a2 Milk to streamline operations by consolidating logistics, warehousing, and retailer engagement under CSFA’s management. It also provides enhanced traceability, quality assurance, and customer service for Chinese consumers — an increasingly important differentiator in a competitive market focused on product authenticity and safety.

Strengthening China Presence and Supply Chain Efficiency

The move into cross-border eCommerce through CSFA marks a strategic response to evolving consumer behaviours in China, where online retail channels have become the dominant route for premium international brands. By leveraging CSFA’s government-backed reputation, operational scale, and established retail infrastructure, a2 Milk can strengthen its brand trust, distribution control, and operational efficiency.

According to CEO David Bortolussi, “The a2 Milk Company’s close strategic partnership with China State Farm is a key factor in our success in China, and I am delighted to be able to extend our cooperation to include the English label cross-border eCommerce channel.”

Zhang Lei, Chairman of CSFA, also emphasised the significance of the collaboration, describing it as “a leading example of successful cooperation in the dairy nutrition sector and a reflection of the strong relationship between China and New Zealand.”

The partnership’s renewal and expansion were formalised at the China International Import Expo (CIIE) in Shanghai, reflecting both governments’ support for long-term agricultural and trade cooperation between the two countries.

a2 Genesis: Next-Generation Premium Product

At the heart of this new phase of collaboration is a2 Genesis, a2 Milk’s most premium English label infant formula designed to compete in the rapidly expanding HMO-enriched nutrition segment. Human milk oligosaccharides (HMOs) are bioactive ingredients that promote gut health and immunity — key selling points in the premium IMF market.

Since its 2H25 launch, a2 Genesis has shown steady commercial progress, achieving month-on-month consumer sales growth on major eCommerce platforms such as Tmall and JD.com. The product has also begun rolling out to key O2O (online-to-offline) retailers, expanding its market reach.

The inclusion of a2 Genesis under CSFA’s exclusive import and distribution arrangements gives a2 Milk direct access to CSFA’s flagship store networks, retail partnerships, and digital storefronts. This integration is expected to simplify warehousing and logistics while ensuring consistent supply chain transparency — a major advantage in a highly regulated market environment.

Strategic Significance and Market Outlook

China remains a2 Milk’s most important growth market, accounting for over 30 per cent of group revenue. Despite slower birth rates and intensified local competition, the company continues to outperform peers in the ultra-premium IMF category, where consumer loyalty and brand trust are critical.

The partnership expansion comes at a time when Chinese regulators are tightening controls on infant formula imports and online cross-border sales. Aligning more closely with a central government–owned enterprise (SOE) like CSFA provides a2 Milk with long-term security, policy alignment, and access to valuable market intelligence.

Analysts view this development as a strategic hedge against regulatory risk and a platform for future growth. By aligning with CSFA’s broader agricultural mandate through parent company CNADC, a2 Milk gains a partner capable of supporting product localisation, traceability systems, and potentially future production partnerships within mainland China — areas critical for long-term competitiveness.

Conclusion

The expansion of a2 Milk’s partnership with China State Farm represents a strategic step forward in consolidating the company’s leadership in premium dairy nutrition. By integrating English label products into its long-standing China operations, a2 Milk gains stronger control of its distribution ecosystem, enhanced market visibility, and a more efficient path to Chinese consumers.

As the company deepens its collaboration with one of China’s most influential agricultural groups, a2 Milk continues to reinforce its long-term growth platform — built on product quality, brand integrity, and partnership strength. With a2 Genesis leading its premium portfolio, the company is well placed to navigate evolving market conditions and deliver sustainable value to shareholders and consumers alike.