Chinese Dairy Giant Yili Reports Sharp Profit Surge in New Zealand Operations
China's largest dairy company Yili says profits at its New Zealand operations have surged thanks to a strategic shift toward premium dairy products. The group is now planning further expansion of its New Zealand production lines.
Yili's New Zealand subsidiary Westland Milk posted a 76 million New Zealand dollar net profit for the past financial year, up from just 18 million a year earlier. Executives pointed to organic and specialty infant-formula exports as the main driver.
The New Zealand government has acknowledged that heavy dairy export reliance on the Chinese market cuts both ways. A renewed bilateral free-trade dialogue is expected to accelerate softer tariff treatment from Beijing.
A planned expansion in Canterbury weighed modestly on NZX-listed peers Synlait and Fonterra. Investors are beginning to price in Yili gaining further market share from local players via Westland.
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