University College Dublin has signed a memorandum of understanding with a leading Chinese dairy producer.

This is expected to result in multi-million euro contracts for Irish products and services.

Enterprise Ireland say the agreement paves the way for Irish companies to provide world-class agri-technology and services to China.

The agreement between the Chinese Dairy United company and UCD envisages the development of a demonstration farm in Hohhot, Inner Mongolia, which will use agricultural and dairy equipment manufactured in Ireland and operated by Chinese staff who will be trained in Ireland.

Dairy United want Irish companies to help them expand their dairy production in Inner Mongolia to produce milk to meet the growing demand in China

UCD will be co-operating with a number of Irish companies to provide education and training, research, services and technology to Dairy United

The deal also involves the creation of a trade corridor, or easier access, for Irish exporters to Inner Mongolia.

The agreement comes as Agriculture Minister Simon Coveney comes to the end of his week-long trade mission to China.