Double whammy for dairy goat farmers
Dairy goat farmers are facing a double whammy: a sharp drop in milk payout and reduced quota to supply the country's sole processor.
Through a subsidiary Yili now owns nearly 35% of the company and becomes its largest shareholder. The deal is one of the biggest in the Chinese dairy industry in recent years.
The partnership will strengthen Yili’s leadership in milk formula and facilitate the company’s entry into the nutrition products market.
Infant formula featuring high growth rate and high value is a category that Yili will focus on.
As one of the leaders in the infant formula market, Ausnutria has seized the opportunity offered by goat milk and emerged as an international dairy company covering infant formula, nutrition products, and other product categories.
Kabrita, Ausnutria’s goat milk formula brand, has become a flagship product in China’s infant formula market.
According to Nielson, Ausnutria has had a share of over 60% in China’s market of imported goat milk formula for three consecutive years since 2018 and topped the world in total sales of goat milk formula.
Pan Gang, chairman of Yili Group, said at the signing ceremony that as the two enterprises have much in common.
“Yili recognizes the values, strategic layout, and the core team of Ausnutria.
“In the years to come, Yili will bring into full play its strengths in terms of company size, brand building, channels and industrial chain to enable Ausnutria’s sound development over the long term.
“The cooperation is expected to form synergy and blaze new trails in the fields of milk powder, dairy products, and other health food.”
Yan Weibin, chairman of Ausnutria, says a strategic investor like Yili will not only create synergy along the industrial chain but also empower Ausnutria in terms of management and strategic planning.
