Mengniu Yashili’s New Zealand Plant: A Flagship for the Dairy Industry
A Flagship for the Dairy Industry
On 6 November 2015, one thousand days and 220 million NZD since the first sod was turned, Yashili New Zealand Dairy Co., Ltd. is finally to hold an opening ceremony. The event is an international expansion landmark for Mengniu. As a wholly owned subsidiary of the Yashili International Group and China Mengniu Dairy Co., Ltd, Yashili New Zealand Dairy Co., Ltd and its new plant will produce 52,000 tonnes of infant formula milk powder, to be supplied as finished product in tins and 25 kg bulk base powder to Yashili International, thus greatly enhancing the international competitiveness of Mengniu’s Yashili brand.
Yashili’s World-Class Plant
Yashili, founded in 1983, has gone on to become China’s leading producer of dairy products. In November 2010, it saw a successful listing on the Hong Kong Stock Exchange, and in August 2013, it was acquired by the Mengniu Group. In October 2014, Danone became Yashili’s second-largest investor, purchasing a 25 per cent stake in the company.
Since 2009, Yashili infant formula has been made from New Zealand milk, recognised worldwide for its excellent quality. This has provided a boost to consumer confidence in the Yashili brand.
In order to have more direct access to New Zealand product, Yashili decided to build a factory there. With this in mind, Yashili Shanxi Ltd sent William Zhao to New Zealand, thus starting Yashili’s New Zealand journey.
In order to find the purest piece of land in that very pure country, the man from Yashili scoured New Zealand from Kaitaia to the Bluff, analysing more than one hundred potential sites. On 13 December 2012, after months of field work and careful consideration, Yashili found the ideal place to build its new facility – in New Zealand’s dairy heartland of Waikato. Waikato’s climate, fertile soils and ample water supplies make it New Zealand’s dairy stronghold. Furthermore, the region’s transport links will make it easy for Yashili to ship its product to hundreds of millions of Chinese babies.
In 2013, Yashili invested 220 million NZD in its Pokeno production facility. Almost three years in the making, Yashili New Zealand Dairy Co., Ltd. has finally finished construction. Yashili International Group’s CEO Lu Minfang emphasised that the New Zealand plant was built from scratch by the New Zealand team, that its milk, production, technology, product quality and formula are all the work of Yashili, and that milk powder for the domestic market 100 per cent manufactured abroad was an unprecedented innovation. Shipments to China are expected to begin in early 2016.
Mengniu Helps Yashili Move into the International Sphere
In 2013, Mengniu bought into Yashili, making it Yashili International’s largest shareholder. Mengniu had been unsatisfied with the global status quo for some time. The company has now developed its global distribution networks, successfully shifting from “Chinese cows” to “international cows”. Backed by Mengniu’s huge financial resources, the internationalisation of Yashili has continued apace.
In a few short years, Yashili, and its strategic partners and household names Arla Foods and the Danone Group, have made inroads worldwide; these bold investments in assets and distribution offer Yashili international horizons. In addition to “bringing home”, Yashili is boldly heading out into the world. By allowing for global distribution of high-quality milk, Yashili New Zealand’s production facility is a key link in Yashili’s global network.
As Yashili’s overseas production base, the New Zealand plant comes with the world’s most advanced technology and the finest automatic control systems. Temperature and humidity will be controlled around the clock, guaranteeing stable production. Automated production will ensure reliable product quality. Danone and Arla have already made visits to the New Zealand plant, praising the high standard of its equipment and describing it as one of the world’s most advanced facilities.
From “bringing home” to “moving out”, Yashili is an example of a Chinese brand blazing a trail in the eyes of the world. Making use of Mengniu’s global assets and digital networks, and through continuous integration of quality resources from around the world, Yashili is striving to provide consumers with greater choice, better quality and products to suit every need. Employing the highest standards to produce the best-quality products – this is the promise of Yashili’s overseas production facilities.
Through the Highest Level of Asset Integration, Yashili will Scale the Peaks of Product Quality
At the opening ceremony, Yashili, Danone and Arla will unveil the Yashili α International Quality Ecological Chain Scheme and sign a memorandum on an international cooperation framework. The three partners will focus on the establishment of the Yashili α International Quality Ecological Chain Scheme and will work together to put it in place, jointly strengthening Yashili’s product quality and building this link in Mengniu’s global network.
The Yashili α International Quality Ecological Chain Scheme is one of the cornerstones of Mengniu’s global deployment strategy. It includes the integration of global quality assets and the production of world-class dairy products so that Chinese consumers can enjoy safer products that offer better value for money.
At the opening ceremony, Danone, Arla and Yashili will sign off the Yashili–Danone Global Raw Materials Procurement Framework Agreement and the Yashili–Arla Technical Quality Cooperation White Paper, which relate mainly to closer cooperation in the areas of milk product safety, handling technology and product development. Danone can offer Yashili support in terms of world-class raw materials procurement, whereas Arla will share and cooperate with Yashili on research processes and quality management techniques. Through its exchanges with these two global dairy leaders, Yashili begins its natural integration into global markets, an indication that the quality of its products is now world-class.
With its global product quality ecological chain, Yashili is bringing Chinese milk powder into the “New Chinese Products” era. What are “New Chinese Products”? Yashili breaks these down into “new structures”, “new quality”, “new heights” and “new milestones”. This means that under the new tripartite leadership structure of Mengniu, COFCO and Danone, Yashili will, through research and development at the international level, transform the very best raw materials into the finest-quality products. Yashili International Group’s CEO Lu Minfang stresses that Yashili’s path from “Chinese products” to “new Chinese products” and from “learning from foreign technology” to “comprehensive use of cutting-edge technology” involves a commitment to the Chinese dairy industry: the production of world-class “new Chinese products” will enable the industry to compete at the global level on the basis of quality.
A Strong Cooperation Platform to Provide a Blueprint for the Dairy Industry
Danone has a highly developed supply chain and is able to support Yashili with raw materials at the global level. Danone Nutricia New Zealand will, in the future, be able to offer Yashili cooperation in the areas of high-quality raw materials and milk powder processing and packaging, becoming one of the links in Yashili’s international production chain.
Danish dairy giant Arla is a global milk powerhouse, with its experience in scientific quality-controlled farming, product safety control and technical innovation being key to its leading role worldwide. Arla’s Arlagarden® quality management system is one of the most important elements of its partnership with Yashili. In terms of science and technology, cooperation with Arla will offer Yashili more scientific and rational pasture quality management technology for use in global milk production, strengthening quality control and elevating technical standards.
Yashili makes a turnaround on the international stage.
This year, Yashili acquired Dumex and Mengniu Arla, enabling it to improve its product line and expand the new structure of its Chinese business.
Effective access to world-class materials and restructuring of its Chinese operation augur well for Yashili’s products worldwide. The Yashili α International Product Quality Ecological Chain, as well as growth and consolidation, will allow for the creation of new quality standards that lay the foundations of a friendlier, more open global dairy industry platform. Yashili will continue looking outwards, seeking better value for money, more flexible interchange and integration of high-quality dairy assets, with a focus on each and every tin of milk powder.
Pearls in the Ocean – The 21st Century’s Maritime Silk Road
China–New Zealand relations are entering a new phase of comprehensive cooperation. On the recently published map of the 21st Century Maritime Silk Road, New Zealand and the South Pacific have entered a new sphere of shared prosperity under the aegis of China. In today’s globalised world, the New Maritime Silk Road can only increase the pace of trade between China and New Zealand.
China, as the world’s second-largest economy and New Zealand, a world leader in farming, have plentiful areas of mutual interest. The achievement of Yashili New Zealand’s goals will be a milestone for the Chinese dairy industry – promoting Chinese dairy’s opening to the world, stimulating international mergers and acquisitions, and increasing China’s international competitiveness.
As a well-known dairy enterprise within China, Yashili will invest in enterprises along the New Zealand stretch of the 21st Century Maritime Silk Road, leading to greater cooperation between China and New Zealand, promising brighter prospects for both countries and offering complementary advantages in terms of resources. In a world in which China–New Zealand cooperation is growing ever closer, this will also stimulate Mengniu distribution worldwide and provide a blueprint for the internationalisation of Mengniu, allowing it to become the global dairy benchmark company!
雅士利，始创于 1983 年，历经 30 多个春秋的发展，已成为中国乳制品行业中的领军企业。2010 年 11 月，于香港成功上市。2013 年 8 月,蒙牛集团控股雅士利。2014 年 10 月,达能以 25%的股份成为雅士利第二大股东。
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