Fonterra, the largest exporter of dairy products in the world, signed an agreement to acquire a 20%stake in the Chinese company Beingmate and plans to spend $555 million to expand its capacity for the production of milk powder in New Zealand.

The company said that it intends to form a global partnership with Beingmate - with a total investment of $615 million, which will help to meet the growing Chinese demand for baby formula.

The partnership will create a fully integrated global supply chain from farmers directly to consumers in China using the company's production facilities in New Zealand, Australia and Europe.

The decision to take another Chinese company as a partner was taken just six years after a previous partner, Sanlu, began selling the tainted baby formula, which resulted in the death of six infants.

Fonterra also still recovering from the damage caused by the recall of dairy products, sold to other manufacturers of baby food, which turned out to be a false alarm. In the incident of the French company Danone broke their contract with Fonterra and sued for a refund of the $300 million loss.

The dairy industry in the world believes infant formula sold in China, "a gold mine". The greedy appetite of China for this product presents an extraordinary opportunity for companies that can cope with the requirements for import and bureaucratic system of this country.

Fonterra obviously sees enough potential profit in the sale of mixtures in China, so the company is ready to invest millions in expansion willing to risk doing business with a foreign partner in a country with a terrible history of the production of poisoned infant formula.

In China in 2008 were poisoned 300,000 children and six died after drinking poisoned infant formula.

Since 2008 revealed that 22 of 109 companies producing dairy products in China were added to the products of melamine, an industrial compound for plastics and fertilizers to hide thinning mixtures with water. State-owned companies such as Mengniu, continued after that to work. In 2011, it was revealed that milk produced by the company Mengniu, contained carcinogenic toxins. In 2012, another state-owned producer of milk, Yili, was forced to withdraw from sale of baby formula because of the mercury content. A year later it turned out that Yili sold baby formula, containing levels of TRANS fats, which are many times higher than normal.