- Health and wellness brand Jatenergy (JAT) has signed a three year dairy distribution agreement with Ocker Products
- Ocker will purchase $80 million worth of products from Jatenergy in the first year of the agreement and distribute them in China
- The company expects to receive orders for cream, skim milk and goat milk powders
- Jatenergy is up 14.8 per cent in midday trade with shares trading for 6.2 cents apiece
Health and wellness brand Jatenergy (JAT) has signed a distribution agreement with Ocker Products for the distribution of JAT dairy products in China.
Ocker Products is based in Australia and has strategic partnerships with Beijing Grain Group and Beijing JingLiang Logistics to obtain food and farm produce on behalf of these two companies.
The three year distribution agreement between Jatenergy and Ocker Products is to ease Ocker meeting orders that it receives from Beijing Grain Group and Beijing JingLiang.
Beijing Grain Corp is a large state-owned company which was established in 1999 by the Beijing Municipal People's Government to provide food security and distribution for China's capital city.
Since then the company has developed and launched a wide range of consumer brands and associated food products.
As announced in October 2018, Ocker has been distributing Jatenergy products to the Beijing Grain Group distribution channels under a strategic cooperation agreement.
Another announcement was made in December 2018 when Ocker was granted the exclusive rights to distribute 900 gram tins of Golden Koala Full Cream Milk powders in China over five years.
Although neither of these agreements have been terminated, Jatenergy and Ocker consider that both are replaced by the new agreement.
The main products sold will be dairy goods, including cream, skim milk, and goat milk powder.
Jatenergy expects to receive orders for both packaged goods and raw materials.
The company intends to fulfil orders for packaged goods through its ANMA dairy manufacturing facility in Melbourne and will fulfil orders for raw materials through sources within Australia and overseas.
Ocker has agreed to purchase a minimum $80 million worth of Jatenergy dairy products and others supplied by the company.
"We are continuing to work closely with our business partners including OPP [Ocker Products], Beijing Grain Group, Sinopharm, Hipac and all major cross-border platforms," Jatenergy CEO Wilton Yao commented.
"We are delighted to be working with OPP and Beijing Grain Group to offer JAT dairy products in and around China's capital," he added.
Jatenergy is up 14.8 per cent at midday trade with shares trading for 6.2 cents apiece at 11:56 am AEDT.