very low compared to other Asian countries. Consumption is currently rising by 11% per year, and will continue to rise.” By comparison, Arla Foods produces 250,000 tons powder per annum. “Our aim, therefore, is to raise turnover from the current DKK 200 million to DKK 500 million over the next five years,” explains Jais Valeur. “The strategic goal for Arla-Mengniu is to become the leading player in the Chinese market within 5-10 years.” ■
Facts China Mengniu Dairy Company Established in 1999. Listed on the Hong Kong Stock Exchange in 2004. Turnover: DKK 5.5 billion in 2004. 84% of the turnover derives from UHT milk, milk drinks and yoghurt, 11% from ice cream and 5% from milk powder. Approx. 23,000 employees, of whom 460 (incl. sales and administration) work with milk powder. Handles two billion kg milk per year at 23 production plants. Joint venture company Arla Foods controls 49%, Mengniu 51%. Arla Foods is investing DKK 65 million in the project.
Mengniu’s large industrial complex in Hohhot is one of the world’s largest and most modern UHT plants with 30-35 production lines.
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The company will produce milk powder at Mengniu dairy’s powder plant as well as importing and distributing added value milk powder from Arla Foods. The Chinese and milk The average pre-capita consumption of dairy products is approx. 10 kg per year. The average international figure is 100 kg. In 2004, the Chinese spent almost DKK 50 billion on dairy products, or twice as much as five years ago. The Chinese first began producing milk in 1978. Although current milk production amounts to 20.3 billion kg, and the growth rate is 28%, China is not self-sufficient with regard to milk.
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