On May 14 when “Belt and Road” Forum for International Cooperation was in full swing, Mengniu Dairy CEO Lu Minfang and Belarus JSC Meat & Dairy Company general manager Pavel Stainov signed economic and trade cooperation framework agreement under the auspices of the Belarus Agriculture and Food Minister Zayac Leonid and other Chinese and foreign guests. In the future, the two enterprises will carry out a number of cooperative projects in trade related to dairy products.
Lu Minfang said, “As Belt and Road is China’s national strategy, it is Mengniu’s responsibility and mission to participate in this initiative. We hope to seize this historic opportunity, enhance our core competitiveness, become the vanguard of dairy industry along the Belt and Road, and bring better products and services to consumers in China and countries along the Belt and Road in order to achieve win-win and share the benefits of development.”
So far Mengniu Dairy’s products have been available in markets of countries and regions including Mongolia, Singapore, Myanmar, Hong Kong and Macau. This year Mengniu also reached tentative deals with Canada, Indonesia, and Cambodia to export products stored in normal, cold and freezing temperature.
In recent years, in response to China’s “Belt and Road” initiative, Mengniu Dairy has become the first dairy enterprise to invest in New Zealand and build its fully integrated value chain. In 2015, Yashili infant formula factory built by Mengniu Dairy in Waikato of the central North Island of New Zealand went into operation, making Mengniu a forerunner of independently building plant overseas among domestic brands of China’s dairy industry. In 2016, Yashili’s New Zealand-made Super α-Golden Stage formula was available in three mainstream local supermarket chains one after another, becoming available throughout New Zealand’s market. Upon the signing of cooperative agreement between China and New Zealand in March 2017, Mengniu teamed up with Peng Xin Group, AsureQuality, and TheLand Tahi Farm to jointly endorse Telunsu exclusive dairy farm in New Zealand. It also signed a cooperative agreement with Massey University to conduct research in food, nutrition and health as well as dairy product R&D. Hence, Mengniu Dairy has made its way into Oceania’s hinterland of dairy resources and connected all links ranging from dairy farms’ milk source to production, sales, innovative R&D and quality control. China’s dairy enterprise has thus acquired a complete overseas fully integrated value chain involving multiple product types.
It is learned that as China’s first enterprise to establish its presence in Australia and New Zealand’s dairy industry Mengniu has invested a total of nearly RMB 3 billion in recent years and provided over 800 jobs for local people.
Situated in the center of Europe, Belarus, whose forest coverage percentage reaches 39%, is one of the world’s top five dairy product exporters with natural and pure quality milk source. Mengniu’s cooperation with Belarus’ JSC Meat & Dairy Company has further expanded its “circle of friends” along the “Belt and Road” and lent more support to its efforts of reinvigorating diverse resources of both domestic and foreign markets, tapping into global resources and accelerating supply-side reform. In the new round of global economic growth, Mengniu is seeking new opportunities and new models while deepening its implementation of “Belt and Road” strategy in order to take the lead in Chinese dairy industry’s brand-new scenario.
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