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Mengniu Dairy Company Eyes Global Strategy

16 December 2019

CHINA - World milk production grew 1.6 percent in 2018 and is forecast to grow at 1.7 percent per year over the next decade, according to the Agricultural Outlook 2019-2028 released by the Organization for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization (FAO) of the United Nations.

The report also identifies China as the world's largest importer of dairy products. China Mengniu Dairy Company Limited, one of the leading dairy product manufacturers in the country, considers going abroad an obvious choice for the company, expecting that the fast-growing market in China will have a big impact on the supply chain of dairy globally.

"I always said that the Chinese dairy or nutrition improvement will have a big impact to the global supply chain of dairy, maybe an opportunity to even restructure the total supply chain," Jeffrey Lu, CEO of China Mengniu Dairy Company Limited, told CGTN's Cheng Lei in an interview on Friday.

Expansion to other markets

Chinese dairy companies have started to expand into global markets. Mengniu announced last month that it was acquiring a major dairy company in Australia, Lion Dairy & Drinks, for 600 million Australian dollars (about 414 million U.S. dollars). The deal came two months after it bought infant-formula business Bellamy's Australia for 1.5 billion Australia dollars (about one billion U.S. dollars).

These acquisitions are in line with Mengniu's strategy of expanding into overseas markets, according to Lu. The CEO added that "to go into the other countries is obviously a choice," while Southeast Asian and Oceanic markets are the "logical next move" for Mengniu.

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Source: CGTN

TheCattleSite News Desk



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