December 11, 2006

China's Mengniu takes first shipment of dairy cattle for its Saibei facility

The approval given by China's Administration of Animal & Plant Quarantine to 2,400 Australian Holsteins destined for Zhangjiakou kicked off the start of operations for Mengniu's Saibei facility.   

A second shipment of cattle is expected in the spring of 2007, and the Saibei herd is expected to reach 10,000 heads by the end of next year, becoming China's largest single dairy operation.

Mengniu's RMB 240-million (US$30.6 million) facility would house the dairy cattle that would supply the raw milk for Mengniu's high end "Telunsu" product range.

Holsteins are famous for their milk production capacity and long milk production periods.

Mengniu's 560-hectare Saibei facility plays a crucial role in the company's overall strategy. The facility would be involved in the feed and milk production and management based on current environmental standards.

When fully operational, the facility would have annual milk production of 64,000 tonnes and revenues of RMB 175 million (US$22.3 million) with profits at RMB 50 million (US$6.4 million) a year. More than 15,000 farmers are expected to benefit by supplying forage to the facility.