Signature of Global Model Plant

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Yili & DFA as Two Champions Launching New Era of Cooperation in China-U.S.A. Dairy Industry

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Nov 18, 2014, 10:00 ET

HOHHOT, China, Nov. 18, 2014 /PRNewswire/ -- The APEC conference has come to the end after a series of consensus have been reached, and some good news about cooperation in the dairy industries of China-U.S.A. is following.

On November 12, Mr. Pan Gang - president of Yili Group, Rick Smith - CEO of DFA, the largest dairy company in the U.S.A., and 20 participants witnessed the signature of a global model plant of Yili and DFA as well as the largest milk power plant in the U.S.A., which left an indelible mark on phylogeny in the dairy industries of China and U.S.A..

On November 12, Mr. Pan Gang - president of Yili Group, and Rick Smith - CEO of DFA, the largest dairy company in the U.S.A. and 20 participants witnessed the signature of a global model plant of Yili and DFA as well as the largest milk power plant in the U.S.A., which left an indelible mark on phylogeny in the dairy industries of China and U.S.A.

According to the introduction of Yili, Yili and DFA have co-financed to establish the model plant for milk powder, which will be located in Kansas, U.S.A. The plant is expected to have an annual production of 80,000 tons. After the completion of the plant, its products shall not only be supplied to the Chinese market but also to other global markets.

Further to the introduction, the joint venture between Yili and DFA is not the beginning of the cooperation. Early in July of last year, Yili and DFA had already established the strategic cooperative relations that prompted industry speculation about their cooperative prospects.

It is generally agreed that deeper complementary demand is the solid foundation for cooperation. With the growth of the global dairy industry, it is an indisputable fact that demand for dairy products in the U.S.A. and other developed countries are saturated. However, the Chinese market is a crucial driver of the global economy. The demand for dairy products is in the stage of rapid growth and the demand for raw milk is also increasing. Furthermore, the introduction of the raw milk production act in the U.S.A. has made it possible for cooperation between both countries. In this way, DFA, as the largest U.S. supplier in upstream raw materials, has cooperated with Yili, who is focusing on the global industrial chain by relying on its domestic market power. It is easy to see why both companies in China and the U.S.A., who are ranked as the Top 10 Global Dairy Companies, are working together to make use of their different advantages.

Besides the complementary advantages, the principals of Yili and DFA delivered their speech and specified cooperative details. CEO of DFA Rick Smith said, "Last year, when we came to China to find a sincere long-term partner, we visited many dairy companies in China, and Yili was the most impressive. The vitality is present everywhere; what's more important, Chinese pasture management, dairy production and testing may reach such a high standard unexpectedly, and a pasture owner along with me said with our American humor that he wanted to bring our American cattle to China Yili. So you should fully understand, we have ultimately chosen Yili as our strategic partner."

Photo - http://photos.prnewswire.com/prnh/20141117/158908

SOURCE Yili Group