Yili to increase its investment in the Organic Dairy segment

Another major Chinese dairy supplier, Inner Mongolia Yili Industrial Group Co., is pumping more investments into the organic dairy segment.
Yili has already started building a production facility for organic dairy products. The facility, based in China’s Inner Mongolia Autonomous Region, will have the capacity to process 4,000 tonnes of fresh milk daily. Yili presently markets organic products under the Satine brand.
Earlier in 2017, Yili planned to acquire a stake in China Shengmu Organic Milk however this plan was stalled as it failed to secure regulatory approval. Yili reported a 13% growth in sales revenue to Rmb 90 billion (US$12.7 billion) in 2019 compared to a year ago.
With the ongoing COVID-19 pandemic, Yili’s Chairman Pan Gang said that the shift towards ‘organic’ shows the company’s commitment to move towards a more ‘sustainable’ business in the future.
As of December 2019, Yili had 1.91 million offline liquid milk points of sale (POSs) in China, a 9.1% increase from the previous year, and about 1.04 million POSs in rural towns and villages.
Yili has also stepped up efforts in building a global network of sustainable supply chains by acquiring New Zealand’s Westland Co-Operative Dairy Company Ltd, speeding up the construction of its production plant in Indonesia and expanding its presence in the ASEAN market.