The Yili Family
Pan Gang, Chairman of Yili Group, has a PhD in Economics from Renmin University of China and a Master in Business Administration of China Europe International Business School. After graduation he joined Yili Group as a shop-worker and at the age of 32 became the youngest president of 520 key state industrial enterprises in China. It was just three years later that he became Chairman.
It was Pan Gang who proposed the “Yili Principle” that “accumulation is more important than speed, balanced development and responsibilities for the industry and society are priorities”. This has guided Yili to promote the sustainable development of China’s dairy industry by advocating the ‘green industrial chain’ development philosophy.
The Yili Group Advantage
In 2013 Yili initiated construction of a state-of-the-art milk dairy processing plant, just four kilometers north of Glenavy and the Waitaki River, in conjunction with Babage consultants and main contractor Eberts. This involved an initial $236 million investment in Stage One of a multi-stage planned development over five years, and milk processing began in the 2014 dairy season. The planned Stage Two construction was completed in 2019 and further development continues.
Moving onto the world stage
To set itself apart from the many other dairy competitors, Yili Group focused on research and development and innovative ways to improve the industry. Proving that it could shift industry standards, and lead a country not accustomed to dairy consumption to a point where demand began outpacing supply, Yili then began to make its mark globally. The investment in Oceania Dairy in 2013 was Yili’s first major offshore acquisition, and it now continues to gather the best resources from around the world including people, raw materials and business management tools. This strategy has contributed to China being set to overtake the US as the largest market for dairy products by 2022. With its focus on product innovation, Yili moved from 10th to 3rd place amongst the most valuable food brands in the world in 2017, with 43% growth to $US6.2 billion. Yili’s continued growth outside of China means that Oceania Dairy is now firmly in place as part of a global community.
Strengthening New Zealand ties
Following the success with Oceania Dairy, Yili Group recently purchased Westland Milk Products, which is seen as another example of mutual benefit for all stakeholders. While significant for the New Zealand economy, it represents only one more step in Yili’s globalisation strategy, with plans to expand in the US, Europe, Middle East and Asia. New Zealand’s strong dairying tradition, high quality raw milk and well regulated industry, combined with Yili’s access to global resources and markets, is set to strengthen the ties between Asia and the Oceania region. Westland Milk Products, like Oceania Dairy, is considered to now form part of the new “dairy silk road”. It echoes the idea of a trade corridor or vast dairy bridge promoted by Chinese President Xi Jinping — to reopen channels between China and its neighbours in the west, helping the world to share healthy products.
Oceania Dairy
Oceania Dairy at Glenavy provides a range of milk derivative, milk powder, infant formula and UHT products direct to parent Yili Group in China. Also in New Zealand’s South Island is Westland Dairy at Hokitika and Rolleston, which provides a range of base dairy products worldwide and includes the Westgold butter brand, along with the EasiYo yoghurt brand manufactured in Auckland. Westland also has a joint venture with Rolleston-based Pure Nutrition infant formula. Meanwhile, Lincoln University hosts a Research and Development facility funded by Yili Group.
Yili Group – Hohhot Headquarter
Founded in 1993, and headquartered in Hohhot, Inner Mongolia Yili Industrial Group Company Limited (Yili Group) is China’s largest dairy company with manufacturing and distribution sites now across the country. It is engaged in processing and manufacturing a wide range of milk products under the Yili brand.
Wageningen University – Netherlands
Chomthana Icecream – Thailand
Established in 1979, Chomthana is now Thailand’s leading ice cream and frozen food manufacturer with distribution in 15 countries. Its products include frozen Chinese dimsum buns, and it is the leading cold chain logistics provider in Thailand.
Canaprole, Uruguay
Sterilgarda Alimenti
In 2013 Yili formed a strategic partnership with Italian company Sterilgarda Alimenti, a specialist in filter membrane technology which can remove harmful bacteria allowing for much longer shelf life. It also allows for low-temperature sterilization of liquid milk, which helps to maintain nutritional value.
In the words of Yili Group Chief Executive Jianqiu Zhang
“Our global vision is to build healthy lives by being the world’s most trusted health-food provider”
