Impressive feat for Chinese company in New Zealand

WHEN people start adding “miracle” next to your name, you’re sure to be doing a great thing. And the Chinese have done it for Yili Oceania Production Base, a Chinese company located in New Zealand.

Formerly Oceana Dairy, the New Zealand company was bought by Yili Inner Mongolia Yili Industrial Group in 2013. Yili Oceania is considered the largest integrated production base for dairy and provides infant milk powder to China. Its first phase project - a $236 million investment - was started in November last year.

Yili Oceania Production Base

But what merits a miracle?

Only a year into its operations, Yili Oceania has expanded its production capacity to surpass those of most New Zealand factories of its kind. In such little time, the company has achieved 30% y-o-y growth.

With this success, Yili has contributed well in promoting economic and trade cooperation between the two countries.  Among the first greenfield investment projects in New Zealand, Yili has generated jobs and supported over 100 farms. Craig Rowley, Mayor of Waimate says of the company: “Yili is part of our big family. We have always regarded it as a 100% New Zealand business.”

Yili is currently undergoing its second phase project which includes four programs, the deep processing of raw milk, UHT liquid milk, milk powder production and packaging.

China’s dairy market

China is the world’s largest market for dairy. According to Euromonitor, the market for infant formula in particular is set to grow to $30 billion by 2017. This is likely to swell even further as China has approved the two-child policy in October.