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Wisconsin and Shanghai Dairy Group Sign Letter of Intent for Future Business

Press Release

Location: Shanghai, China

Governor Scott Walker today announced that the State of Wisconsin has entered into three letters of intent with the Shanghai Dairy Group (SDG) to establish future business agreements. The letters of intent were signed during the opening ceremony of the Wisconsin China Center. The University of Wisconsin Babcock Institute also formed an agreement to provide technical dairy training for the Shanghai Dairy farmers.

Governor Walker witnessed the agreement that was signed by Ben Brancel, Wisconsin Department of Agriculture, Trade and Consumer Protection Secretary, and Shen Weiping, President and CEO of the Shanghai Dairy Group.

"This letter of intent between the State of Wisconsin and Shanghai Dairy Groups illustrates the high regard Wisconsin agriculture has globally," Governor Walker said. "Wisconsin agriculture has a tremendous capacity for producing livestock feed and agricultural equipment."

The letter of intent recognizes Wisconsin's abundant supply of quality animal feed products available for the Shanghai Dairy Group and identifies Wisconsin as a source of agricultural equipment and technical support for the Shanghai Dairy Group.

"This letter of intent gives Wisconsin another chance to showcase the high quality products we have in our state that can be shipped anywhere in the world to help meet the needs of food security," Secretary Brancel said.

In addition to stating the intent to continue the long-term partnership and cooperation between the State of Wisconsin and the Shanghai Dairy Group, the letter of intent expresses Shanghai Dairy Group interest to purchase animal feed products including Distillers Dried Grains with Solubles (DDGS) over the next three years and agricultural equipment from the State of Wisconsin.

The University of Wisconsin Babcock Institute agreement will provide technical training for Shanghai management over the next three years. Each year, ten farm managers will participate in hands-on training to learn how to improve milk quality, increase production, and provide high-quality dairy products to their customers. Training will occur both at Shanghai Dairy farms as well as at the UW-Madison Agricultural Research Stations.

The University of Wisconsin Dairy Science faculty will have the opportunity to provide instruction on Chinese farms and overcome unique problems they may not encounter on farms in Wisconsin. They will also contribute to the improvement of milk quality for the Chinese people.

Dr. DeLuca, Provost and Vice Chancellor of Academic Affairs signed the agreement for the University of Wisconsin. Signing for the Shanghai Dairy Group is Ji Ping, Human Resource Director.

Lastly, a letter of intent was signed between the Shanghai DingNiu Feed Co. Ltd., a company of SDG, and Badger State Ethanol LLC. (Monroe). The agreement is for the sale of animal feed products over the next three years. Once the details are finalized, this agreement will be the first ever animal feed product purchase from a Wisconsin company with Shanghai Dairy.

Learn more about the China mission trip online at or follow on Twitter at #WIGovChinaTrade for updates on the trip.

About Shanghai Dairy Group

The Shanghai Dairy Group includes 40,000 cows on multiple farms, a feed facility, dairy processing, food retail, beef steers, dairy equipment and dairy technology research. Representatives from Shanghai Dairy Group traveled to the University of Wisconsin-Madison, Badger State Ethanol, Didion Milling and also made visits to Wisconsin dairy and beef operations in November, 2012. Their goal during last year's visit was to find partners from Wisconsin to grow their dairy business.

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