COPENHAGEN - Danish dairy giant Arla Foods will sell 20,000 tons of Danish-produced milk powder to China annually under a 10-year contract, the company said in a press statement Friday.

The contract is agreed with Chinese company Biostime International Holdings Limited, which sells child-nutrition and baby care products in China, it added.

The milk powder will be produced at Arla's factory in Videbaek, western Denmark. The 20,000 tons per year target will be met first in 2015, the company said.

Earlier this month, Arla Foods entered various agreements with Chinese food companies during the state visit of Chinese President Hu Jintao to Denmark.

These included an agreement with China's leading dairy company Mengniu, to widen distribution and sale of Arla products in China, and with food product company COFCO.

Co-owned by Danish, Swedish and German milk producers under a cooperative model, Arla Foods has its core market in northern Europe. It posted net profit of 1.3 billion Danish kroner ($220 million) in 2011.