Yili launches Oceania production base in New Zealand

By Liu Yufen (chinadaily.com.cn)

Updated: 2014-12-04

Inner Mongolia Yili Industrial Group Co, a Chinese dairy giant, unveiled its Oceania Production Base in New Zealand on Nov 21. Chinese President Xi Jinping and John Key, prime minister of New Zealand, inaugurated the dairy base located in Waimate, a city that produces 42 percent of New Zealand's raw milk.

President Xi Jinping and Prime Minister John Key of New Zealand inaugurate Yili Group’s Oceania Production Base on Nov 21 in Waimate, New Zealand.[Photo provided to chinadaily.com.cn]

A total of 2 billion yuan ($325.13 million) will be invested into construction of the base's four projects, including raw milk deep processing, UHT (ultra-high temperature processing) liquid milk, milk powder manufacturing and packaging.

President Xi Jinping visits Yili's booth at the Agricultural and Animal Husbandry Technology Exhibition of New Zealand in Auckland on Nov 21.[Photo provided to chinadaily.com.cn]

With a combined investment of 3 billion yuan ($489 million), Yili's Oceania Production Base will be the largest dairy products production base in all Oceania. Moreover, the project covers a range of fields, from research, packaging, production to deep processing, making it the largest integrated dairy base in the world.

Yili Group is a Chinese dairy enterprise that enjoys the widest cooperation with New Zealand.

President Xi Jinping and Prime Minister John Key of New Zealand witness the signing of the cooperation agreement between Yili Group and Lincoln University of New Zealand on Nov 21.[Photo provided to chinadaily.com.cn]

On the same day, a cooperation agreement regarding comprehensive dairy industry chain research was reached between the group and Lincoln University of New Zealand, the only university specializing in agriculture and food in the southern hemisphere and a top global research institution. The agreement is a highlight of the cooperation between Yili and New Zealand.

Craig Rowley, mayor of Waimate; Steven Joyce, minister of the New Zealand Ministry of Economic Development; Pan Gang, president of Yili Group; and Nathan Guy, minister of the New Zealand Ministry of Primary Industries, (from left to right) pose in front of Yili’s booth at the Agricultural and Animal Husbandry Technology Exhibition of New Zealand. [Photo provided to?chinadaily.com.cn]

According to the agreement, Yili and Lincoln University will carry out in-depth cooperation by utilizing the two parties' advantageous resources and technologies. Their cooperation will focus on how to improve dairy product nutrition and quality in the first several years.

President of Yili Group Pan Gang makes a speech on interaction and future at the launching ceremony of Yili Oceania Production Base on Nov 25. [Photo provided to chinadaily.com.cn]

Yili strives "to lead demand by innovation and stimulate innovation by demand," said Pan Gang, president of Yili Group. Pan explained that the frequent interaction between China's dairy players with their New Zealand counterparts is good for a better industrial alliance in the short-term. However, Yili's ultimate target is to bring the best quality products to consumers.

Toddy McClay, minister of Foreign Affairs and Trade of New Zealand, makes a speech at the launching ceremony of Yili’s Oceania Production Base on Nov 25 in New Zealand. [Photo provided to chinadaily.com.cn]

Andrew West, president of Lincoln University, is confident that its cooperation with Yili will help promote the upgrade of the whole industrial chain.

Four days later, on Nov 25, Yili Group held a launching ceremony of its Oceania Production Base.

Toddy McClay, minister of the New Zealand Ministry of Foreign Affairs and Trade, describes the production base's launch as a big step toward Yili and New Zealand's long-term mutual beneficial relationship.

Edited by Michael Thai