Leading dairy companies from China and the United States have struck an agreement on production, including long-term strategic purchase and farm services.

The two companies, the Inner Mongolia Yili Industrial Group and Dairy Farmers of America Inc, may set up a joint venture company or build new brands, Zhang Jianqiu, Yili's CEO, told Shanghai Securities News, on Monday.

DFA, headquartered in Kansas City, Missouri, owns 18,000 farms in 48 states in the US. It is also an important partner with other food and beverage giants including McDonald's, Pizza Hut, Kraft Foods and Starbucks.