Feihe Dairy Signs Agreement with Martek

Faihe Dairy has signed an agreement with Martek Biosciences to purchase its total requirement of nutritional oils for its premium infant formula and milk products sold in China.

Feihe Dairy, a wholly-owned subsidiary of American Dairy, will buy docosahexaenoic acid and arachidonic acid made by Martek, which contain fatty acids naturally present in breast milk, to use in its infant formula and certain milk products.

US-based Martek says the multi-year deal is an effort to expand in China.

The terms and financial size of the deal has not been disclosed, according to businessweek.com.