Chinese dairy producer Inner Mongolia Yili Industrial Group and Wageningen University will jointly develop a food security system.
The announcement comes as part of a series of cooperative agreements aimed at supporting agriculture sectors of China and the Netherlands.
The China-Netherlands food security system project is the first between the two countries since they established diplomatic relations.
The project will bring together the practices of the two countries as well as incorporate advanced technologies for biological cell culture, evaluating biological cell safety and other functional factors.
It will also engage in data applications for quality analysis of the dairy products.
Yili Group chairman Pan Gang said that the system will be built on top of earlier developments in pasture management based on milk source upstream technologies, formulation of a feed and soil evaluation system, including a backtracking mechanism.
On completion, the project will offer dairy product monitoring systems in the EU and in China working in concert with each other.
Gang said, "The co-building of the food security system is very important to the development of China's as well as to the world's dairy industry."
Last month, Yili opened a new European R&D center at the Netherlands-based university campus.