Kohlberg Kravis Roberts & Co LP, one of the largest private equity firms in the world, announced on Tuesday the formation of a new joint venture with partners to deliver premium raw milk to Chinese consumers.

The joint venture's first move will be to set up two large-scale dairy farms with a total investment of $140 million.

The company plans to build two farms with about 10,000 cows each over a two-year period. The farms will be located in Shanghe county, Shandong province.