In response to food safety concerns in China, it had invested hundreds of millions of dollars building a chicken-meat supply chain in the country that included a feed mill, hatcheries and slaughtering operations. In the United States, it focuses on processing meat that is purchased from other suppliers. In the Fonterra deal, which is subject to regulatory approvals and calls for it to take a 20 percent stake in Beingmate, the two companies will import infant formula ingredients from Fonterra's dairies and manufacturing sites in New Zealand, Australia and Europe for sale in China. "Extensive due diligence has taken place from both sides," said Mr. Spierings of Fonterra, "and we have made arrangements on governance very clear."