Recently, Yili, one of the Chinese top 500 enterprises, has signed a cooperation agreement with the local government of the city of Zhumadian seated in Henan Province. According to the agreement, Yili will spend about RMB 3 Billion in building a large-scale pasture and an intelligent dairy factory in the city, with the purpose of creating a high-end dairy cluster base in China.
Great importance attached by government of Zhumadian regarding great economic benefits
The city government of Zhumadian pays close attention to this cooperation and published the news officially right away. It is reported that the cooperation will bring quite a lot of benefits to the economy of the local area: with an estimated annual output of almost RMB 5 Billion achieved, nearly RMB 100 Billion will be driven by the industrial chain.
That is to say, 20 thousand people will be directly employed in the city, which will drive an indirect employment of 50 thousand people. Apart from that, because of the dairy cluster base, a variety of industries, such as planting, breeding, feed processing, logistics and packing, will be developed simultaneously. This so-called synergistic effect will with no doubts strengthen the economy of the city to a great degree.
Zhumadian provides useful resources for Yili to achieve its high-end dairy cluster base
According to the chairman of Yili, Henan is regarded as an important area of the company’s development. Every investment in Henan plays a significant role to the company. In response to the government’s advocating to boost the dairy industry in China, Yili plans to create the best high-end dairy cluster base in the world with the help of the agricultural advantages in the city of Zhumadian and the existing business advantages of the company itself.
The mayor of Zhumadian thinks highly of the excellent milk source supply and the internationalized management of the company. He believes that Zhumadian, as a great potential city rich in Chinese culture and with great geographical location and excellent environment, can definitely provide a strong base for Yili. The mayor also plans to develop the city into one with dairy as the leading industry in the future. To achieve a healthy and sustainable development of dairy industry will become one of the goals of the city.
Yili benefits from cluster effect in its development
As a leading dairy enterprise in the country, Yili plays an indispensable role in the development of Chinese dairy industry. The company has been even considered as one of the world’s most successful dairy companies and has been placed in the first place in the Asian dairy industry in the past few years.
Yili is very good at using cluster effect in its development. Earlier in 2015, the company achieved an “intelligent cluster” by working together with different top universities and scientific institutes from the US on projects in the fields of nutrition and health, product research and development, food safety, agricultural technology, ecology and environment protection, enterprise management as well as personnel training. This “intelligent cluster” served as a new engine for the innovative cooperation between the two countries.
For more information on China’s dairy market, please check our Dairy Products resources.