Yogurt sales are expected to rise 18 percent this year in China from the same period a year ago to 122 billion yuan ($18.4 billion) and would for the first time overtake milk sales in the country, according to new data. Milk sales for the year are expected to rise 4 percent to 117 billion yuan, according to market research provider Euromonitor International…Full Article: China Daily Oct 2017

Key Points

  • From 2013 to 2017, China’s yogurt sales increased 108.6% while the country’s milk sales rose by just 18%. According to a dairy industry analyst, the profit margin of yogurt is approximately 40% or roughly double that of milk in China.
  • From 2015 to 2016, Yili Dairy Group’s Ambrosial Greek yogurt brand saw its sales increase by 106.7%. The Greek Academy of Agricultural Sciences contributed to it development.

ChinaAg Comments

  • In May 2017, Yili Group attempted to acquire Stonyfield (US yogurt producer) from France’s Danone for approximately USD 850 million. Danone ended up selling Stonyfield to their compatriots Lactalis (French dairy company).
  • In November 2016, Yili Group announced a profit increase (20.69% year-on-year) during the first three quarters (January to September) of 2016. Yili Group attributed part of its profit increase to sales of its Ambrosial high-end yogurt (Greek yogurt product).
  • In 2014, France’s Danone acquired USA’s Stonyfield Farm (producer of yogurts, smoothies, milk and cream).
  • Inner Mongolia Yili Group (SHA:600887) traces its roots back to 1956 when it operated as a dairy cooperative in Hohhot, Inner Mongolia Region. In 1993, the company was restructured as Yili Group and began its ice cream operations. Currently, Yili produces milk, milk beverages, sorbet, ice cream, milk powder, milk tea powder, yoghurt, and cheese. Since 2005, the company has been China’s top supplier of milk powder and milk tea powder.

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