Genus to link with China scandal firm

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Although the investigation focused on rival company Sanlu, products of Mengniu and 20 other producers were also found to be contaminated.

However, the attractions of getting into bed with Mengniu are manifold. Its contract farmers have almost twice the number of cows as the entire UK market, and Chinese demand for cow and pig products is growing fast.

Genus is set to report half-year results next week. Dougie Youngson, an analyst at Ambrian Capital, is a fan of the firm, and said China is an ideal target for it to expand into.

"However, we feel that its JV partner may prove to be a controversial choice as it was implicated in last year's milk scandal," he added.