Australian Dairy Nutritionals Group (ASX:AHF) has entered into a five-year cooperation agreement with Beijing Yiqing Food Group.

The deal will see the two companies work together on distributing ADNL's infant formula and milk powders in China as well as the development and distribution of Yiqing branded meat and dairy products in the Asian country.

The companies also intend to start a joint venture to develop high-quality products for Beijing Yiqing.

Beijing Yiqing Food Group has total assets of $US233B under management, and ANDL's Chairman Martin Bryant said "Given the size and scope of Yiqing's buisness in China, this represents a very significant opportunity for the Group."