China Mengniu Dairy Company Limited invested 360 million RMB to YST Dairy Farm Limited to solve raw mil
Following the cooperation between Yili Group & Huishan Dairy, Mengniu Dairy announced their plans to invest in YST shares with a total value of 60 million USD.
According to the prospectus of YST Dairy Farm, beginning from the end of June 2013, the group currently owns and operates two oversize pastures as well as two large scale pastures with a breeding stock capacity of 38,788 cattle; while as of the end of 2012, the Group began running a total of four pastures feeding 37,000 cows and producing 460 tons of raw milk. The group's average annual milk production of dairy cows per head amounted to 8.9 tons, 62% higher than average of the industry.
On the 13th of November, Yili Group and Italy's largest milk producers (Sterilgarda Alimenti S.P.A) officially announced that they reached a strategic cooperation in Shanghai. Now, Mengniu Dairy also has new plans of expansion with experts from the industry claiming those moves will solve the raw milk shortage situation in Chinese markets.
According to the data from the Ministry of Agriculture, during the first three weeks of October, the price of raw milk from the top 10 major producing provinces continue to rise at a small increment, the average price arising at 3.77 RMB/kg, rose 14.23% comparing with the same period of last month.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.
Source: http://www.aastocks.com/sc/stocks/analysis/china-hot-topic-content.aspx?id=200000283860&type=21&catg=3