Inner Mongolia Yili Industrial Group Co Ltd, the Chinese dairy giant, announced on Friday [21 November 2014] its plans to invest in four dairy projects in New Zealand for a combined 3 billion yuan ($489 million) to build the world’s largest dairy base. The project’s scope will range from raw milk processing, UHT (ultrahigh temperature processing) and liquid milk, as well as milk powder manufacturing and packaging projects. The deal is aimed at improving the dairy group’s profitability and competence and brand influence in the global market. On Nov 12, Yili and Dairy Farmers of America, a huge US cooperative, signed a deal to build a powdered milk plant in Kansas in the United States – the largest milk powder producer in the US…Full Article: China Daily Nov 2014

Key Point

  • In early 2014 a New Zealand dairy producer, Westland Milk Products, announced that they would invest in an infant formula plant (US$102 million) with the stated aim of exporting to China.

ChinaAg Comment

  • Milk and cream, concentrated (HS 0402) products are the most popular dairy products (vis-à-vis fresh milk, butter, cheese, eggs, honey, etc.) that mainland China imports from New Zealand. From 2009 to 2013, mainland China (excl. Hong Kong & Macau) imports of concentrated milk and cream increased from 204,320 MTs to 686,527 MTs. For comparison, fresh milk and cream (HS 0401) imports from New Zealand rose from 5,576 MTs to 33,181 MTs over the same time period.

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