You are using an older browser version. Please use a supported version for the best MSN experience.

Chinese dairy giant expands NZ plant

NZ Newswire logoNZ Newswire 25/03/2017

Chinese diary giant Yili is promising rising prices for farmers as it expands its dairy processing plant in Glenavy in south Canterbury.

China's largest dairy company commissioned a $236 million milk processing plant on a 38ha block of land at Glenavy, near the Waitaki River, in 2014.

The company says the $400m second stage of the project is beginning. It includes a new UHT plant, infant formula canning line, blending facilities, a whole milk powder dryer, and facilities to manufacture UHT milk products and lactoferrin.

The company says it's actively working with farmers in the district to augment its milk supply to meet its growing production needs.

Presently, 67 farmers supply milk to Oceania Dairy.

Yili says it's developing a set-price mechanism for the price of milk whereby the milk price is guaranteed to improve year-on-year cash flow management for farmers.

Yili Oceania Dairy is also launching a major recruitment drive, having boosted employment at the plant during the stage two development.

Yili Group also announced on Saturday it's launching a new premium PRO-KIDO Ruihu infant formula.

Yili Group New Zealand chairman Pan Gang said his company was fully committed to New Zealand, as evidenced by the significant and ongoing investment in Glenavy.

Yili has also signed a memorandum of understanding with Lincoln University near Christchurch.

Oceania Dairy's research and development manager Dr Philip Wescombe is now based at the university to assist in the establishment of a new research and development centre.

"We consider Lincoln to be one of the finest agricultural tertiary providers in the world, and we think this joint venture will generate innovation to the benefit of not only Yili group but the wider New Zealand dairy sector," Mr Pan said.

image beaconimage beaconimage beacon