China Mengniu Dairy Company Limited

Type of Organization

Enterprise

Type of cooperation

Direct investment, Capacity building

Region

Asia and the Pacific

FIELDS OF EXPERTISE

Mengniu is a leading dairy producer both in China and the world. It earns top share in Chinese market and has entered the market in Southeast Asia, Oceania and North America. It has overseas production base in Australia, New Zealand and Indonesia.

COOPERATION

Type of cooperation

Direct investment, Capacity building

Current Cooperating countries

Australia, New Zealand, Indonesia, Tanzania

Potential Cooperating Countries

Malaysia, Cambodia

South-South and Triangular Cooperation

Summary of Projects and Achievements

Direct investment:

Mengniu has been implementing the Chinese enterprises “going out” strategy by actively sourcing high-quality milk globally, investing overseas dairy producers, developing foreign trade and operating overseas dairy production base.

Capacity building:

Other than investing overseas dairy production base, Mengniu also actively carry out training programs for local talents, which foster knowledge exchange.

Major SSTC Projects

The Indonesian Overseas Factory

Duration: 2018-now

Location: Bekasi, Indonesia

Activities:

Build up the local milk sourcing-production-marketing chain

The Indonesian Overseas Factory covers an area of 22 mu, with a construction area of 8,800 square meters and a planned production capacity of 260 tons/day. It integrates local milk sourcing, production and marketing, with its product gaining importance in the Indonesian market.

Adhere to high international quality standards and foster the upgrading of local dairy industry

The factory already obtained Environmental Permit from Government of Bekasi Regency and implemented Halal Assurance System. The products have also declared Halal and obtained Distribution License. Production process strictly tally with the food safety law.

It also supports local milk suppliers to improve their product quality by on-site trainings and study tours.

Set up Yoyic vocational school to cultivate local talents

Mengniu collaborates with the Jiangsu Pharmaceutical Science College and the Kopertip Indonesia to jointly build this food industry talents training school. Trainees from Indonesia are equipped with vocational skills in dairy industry, which broadens their career path and contributes to sustainable local development. During COVID-19, the vocational school also carries out online courses covering cultural and language courses, as well as food technology.

Results: It is Mengniu’s first factory that has overseas production and marketing integration, which contributes to the internationalization of the enterprise. Moreover, it provides nearly 1000 job opportunities for local population and contributes to local economy. The Yoyic vocational school sets up the “China-Indonesia School-School-Enterprise” model, and is one of the China-ASEAN 100+100 Institutional Cooperation Flagship programs.

Mengniu funded the "Dairy Nourishes Africa" (DNA) project initiated by the Global Dairy Platform（GDP）

Duration：2020-2021

Location： The United Republic of Tanzania

Activities: Carry out improvement work for two Tanzanian dairy plants, dispatch professional technical consultants, initiate pilot projects of internal agricultural technology extension personnel, and train Tanzanian dairy industry practitioners to help them better respond to the impact of the COVID-19 epidemic.

Results: Restored stable business to a small and medium-sized dairy processing plant that was on the verge of bankruptcy, protected the livelihoods of more than 20 employees and 800 dairy farmers in small ranches, and achieved a 30% year-on-year increase in sales

Highlights: Through the assistance of "teaching people to fish", it helped a medium-sized dairy processing factory to improve the quality of raw milk, and successfully trained 6 agricultural technology extension workers and more than 130 dairy farmers.