Infant formula company Bubs Australia is targeting a five-fold...

Infant formula company Bubs Australia is targeting a five-fold increase in what is already the nation's biggest milking goat herd to meet speciality product demand from Chinese families.

Bubs founder and managing director Kristy Carr said it wanted to grow the herd from about 8500 milking goats to 50,000 and was also seeking to lock in exclusive supply deals with other farmers.

The herd increase will underpin Bubs' aggressive strategy to emulate the success of bigger players in infant formula, including ASX-listed A2 Milk and Bellamy's, by tapping into the evolving supply chain and the premium market segment.

Bubs said on Monday it expected to at least double sales revenue next year through a long-term supply agreement with China-based supply chain and service provider New Times Asia.

The Bubs share price jumped on news of the agreement, which includes a total sales commitment of $17 million next year with an increase to $24 million in 2019-20 and $37 million in 2020-21.

New Times Asia specialises in e-commerce sales and service major and second tier e-commerce platforms, while last week Bubs announced a distribution agreement with QianJiaWanPu (QJWP), which supplies 80,000 Mother & Baby stores in China and is considered the country's biggest distributor of infant nutrition products.

Mrs Carr said the infant formula market was changing, with 30 per cent of sales now occurring through e-commerce and premium brands growing market share to about 40 per cent.

She said Bubs had a three-pronged attack in sales which recognised the importance cross-border e-commerce as well as daigou operators, who have taken a shine to the company's products recently, and the QJWP agreement to get product into tens of thousands of stores.

"There has always been true domestic demand for our product range of organic baby food and goat milk formula but we've seen daigou traction really pick up in the last three to six months," Mrs Carr said.