The Chinese dairy industry has enjoyed 10 percent plus annual growth since the late 1990's in response to rising incomes, a broader adoption of western-style foods and improved refrigeration and cold chain distribution systems as well as government support for better nutrition. The largest sector of the 9 billion litres Chinese dairy market is ice cream (54%), followed by liquid milk (33%) and yoghurt (12%).

Montec's market development strategies have been strengthened through a partnership with Beijing Sanyuan Foods (BSF), one of China's largest dairy processors, is now also Montec's largest shareholder.

Montec's business model in China is underpinned by a production and distribution partnership with Beijing Sanyuan Foods (BSF). BSF packages dairypure and Meng Tai branded milk for Montec and provides logistics and distribution services in Beijing and Shanghai. Montec anticipates being able to shift to a licensing model at some stage with processors paying a fee for use of the brand and product formulations whilst being responsible for working capital and sales. Montec would retain responsibility for brand marketing support and product development.

In April 2007, Montec completed a capital raising that will enable the company to boost its marketing and product development. In particular, Montec has targeted a distribution reach of over 10,000 outlets by the end of 2007.