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March 29, 2012


Mengniu Dairy to invest US$0.55 billion in building pastures



China Mengniu Dairy Co., Ltd. announced on Tuesday (Mar 27) that it would spend RMB3-3.5 billion (US$0.48-$0.55 billion) in establishing its own pastures supporting almost 150,000 cattle in the next five years.


The money needed will be paid by the company's own fund. Since February 2012, the past quality management system has been divided into two independent departments namely raw material quality management centre and finished product quality management centre. Besides, a quality safety management centre directly run by the president has been established.


Mengniu Dairy disclosed in the announcement that it was exploring overseas market as planned and that its products were sold in Hong Kong and Macao last year again.


The company's products were taken off the shelves in Hong Kong and Macao in 2008 due to the melamine scandal. Mengniu Dairy believes that the first step for its internationalisation strategy is to return to Hong Kong and Macao markets. The company set up its overseas marketing centre and international strategy department in August 2011 in order to launch detailed market research on international dairy industry. In 2012, the company wants to explore other foreign markets such as Singapore and Mongolia.


Mengniu Dairy pointed out in its announcement that the company's spending on advertising accounted for 7.6% of its total income and stood at RMB2.84 million (US$0.45 million) last year, growing by 20% from RMB2.36 billion (US$0.37 billion) in previous year.

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