Beijing Sanyuan Foods Co Ltd, one of China’s leading dairy producers, plans to purchase a majority ownership in Crowley Properties Ltd, a Vancouver-based company making dairy products such as yogurt, cheese, ice cream and butter for about C$19 million ($14.58 million), according to an announcement by Sanyuan. The acquisition was approved by Sanyuan’s board of directors in May and is now under assessment by related government departments…Full Article: ECNS.cn July 2016

Key Point

  • Beijing Sanyuan Foods would purchase Canada’s Crowley Properties through a joint venture in which it would have a 51% stake while Canada’s Proto Capital Investment & Trade Group would hold a 49% stake.

ChinaAg Comments

  • In May 2014, it was reported that Sanyuan received CNY 10 million (US$1.6 million) from the Beijing municipal government to research and develop infant milk powder. During the same month, the company refuted claims published in the media that it used tainted gelatin to produce yogurt. Specifically, a media report published on 9 May 2014, contended that Sanyuan bought 20 MTs of leather contaminated gelatin from Gelita Cangnan Gelatin, a German firm based in Zhejiang province.
  • In June 2008, Sanyuan began supplying Olympics’ related businesses (e.g. hotels, restaurants, sports villages, etc.) in the wake of the melamine food scandal, replacing Yili as the primary Olympics dairy supplier
  • Founded in 1997 (origin’s date back to 1957) and headquartered in Beijing (originally in Haidian District), Beijing Sanyuan Food (SHA:600429) produces a wide range of dairy products including UHT (Ultra-High-Temperature processed) milk, yogurt, bagged milk, powdered milk powder, cheese, and various types of milk-based drinks. Sanyuan was only major dairy that was not implicated in the 2008 melamine scandal.

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