Mengniu invests big in Yinchuan, dairy giant ascends in northwest

On July 20, Mengniu Dairy Group claimed RMB 750 million investment on 1,000 tons production site at Economic and Technology Development Zone of Yinchuan city, Ningxia Autonomous Region. Dairy experts said the launching of Mengniu s Yinchuan project signified that the strategy of northwest and Gansu and Shaanxi Province planning was carried out overall. This would not only strengthen Mengniu s champion position in China, but also lay a solid foundation for improving Mengniu s global position among world s dairy companies.

Mengniu s layout in northern-frontier to support regional economy development

Ningxia Autonomous Region locates at the lush southern-type fields in northern-frontier where historically based important raw milk supply site by which dairy industry has been the pillar industry for Ningxia Autonomous Region. Through reform and opening to the outside world especially grand western development program and superb geographical nature condition, Ningxia has already grown to one of four good raw milk supply base nationwide along with Inner Mongolia, Shaanxi, and Hebei Provinces.

It is known that there are two phases of Yinchuan project Mengniu is going to take. The first step plans to invest RMB 550 million of which RMB 200 million will be used to build the 1st phase farm in the form of joint investment and solely investment to cooperate with existing high quality milk source in Ningxia; RMB 350 million will be invested to build factories with designed capacity of 800 tons per day targeting at premium and ambient milk production. The first phase project will start in 2010 and finish in November of the year. The second phase project will adopt the form of workshop + farm in 2014 at economic development zone of Yinchuan city with processing capacity of 1,000 tons liquid milk.

It is projected that the revenue of the project yielded will reach RMB 2.4 billion with tax payment of RMB 220 million, offer hundreds of work position for the region and lead over 100,000 dairy farmers to head on the road of prosperity. This production base and its counterpart raw milk supply infrastructure construction will not only give effect of power radiation to surrounding provinces and region, but also promote Ningxia s dairy industry to a new height and through great-leap-forward development, Mengniu will become a dynamic dairy industry center in northwest of China.

Green sustainable development of ecology challenges world s top dairy industry

Just a month ago, Rabobank, global most professional food and agriculture bank, released the latest world s top dairy companies list, and Mengniu as the only Chinese dairy maker along with Nestle, Arla Foods and Fonterra enter the world s top 16. This is the highest Chinese dairy company ranking in the history among global dairy giants.

The statistics shows that at present Mengniu has already become the champion of liquid milk production in the world and the champion raw milk collection in Asia. What s more, Mengniu is the three years sales champion in Chinese market. Among the milk Chinese milk drink, there are four cups of milk out of ten in China are produced by Mengniu. Of ambient milk, milk beverage, yogurt and ice cream market, Mengniu has been keeping the leading position.

What makes Mengniu grow so fast to become a new star among international dairy industry? It is just that green ecology concept permeated in the process of production. It is known that the current Yinchuan project being built will implement green operation. To reach this goal, Mengniu invests over RMB 30 million to construct sewage disposal plant, energy preservation and recycling economy programs.

The year 2010 is the tenth anniversary of grand western development program which is also the second decade start point for Mengniu Dairy Group. Analysts point out that Mengniu s efforts on Yinchuan raw milk supply construction will on one hand omni-directionally enhance dairy industry s green industrial chain and on the other influence the market structure in northwest, which in turn brings along the upgrading of local dairy industry and lays a solid foundation for raw milk supply construction so that the goal of entering the world s top ten dairy maker can be early realized. From:sina.com.cn