On January 13, Youran Animal Husbandry and Dongxin Farm, a subsidiary of Jiangsu Nongken Group, held a signing ceremony for an online investment cooperation agreement. The two sides will invest a total of 600 million yuan to build a demonstration ranch with a scale of 12,000 heads. The two sides will also carry out in-depth cooperation around the construction of modern demonstration farms that combine agriculture and animal husbandry, integrate planting and breeding, ecological cycles, and green environmental protection, as well as green agriculture, sightseeing and tourism, and jointly build a first-class raw milk supply base in the industry.
Yili Group Chairman Pan Gang, Executive President Zhang Jianqiu, Youran Animal Husbandry Deputy General Manager Jiang Guangjun and relevant responsible persons attended the signing ceremony in the form of an online meeting.
As one of the few animal husbandry companies in the world whose business layout covers the entire upstream of the dairy industry, Youran Animal Husbandry is one of Yili's closest partners, and the latter holds 34.8% of its equity. According to the financial report data, in the first half of 2021, the total revenue of your ran animal husbandry's raw milk business was about 4.352 billion yuan, of which the raw milk sold to Yili was about 3.990 billion yuan.
The cooperation between Youran Animal Husbandry and Jiangsu Agricultural Reclamation is also of great significance for Yili to further deepen the East China market: driven by the domestic "double cycle" economic model to stimulate domestic demand, it has promoted the upgrading of the domestic consumer market, especially in East China, the economy is developed, the middle class population accounts for a high proportion, the dairy market consumption potential is huge, and it is an important sales market for many dairy enterprises.
Previously, Yili had investment projects in Suzhou, Hefei and other places in East China. Over the years, Youran Animal Husbandry has continued to increase its investment in industrial layout in East China, and has built three industrial clusters in Jiangsu, Shandong and Anhui, including 11 farms under operation and construction, and the number of dairy cows will reach 100,000 after all the farms are completed and put into operation, providing a full guarantee for the supply of raw milk in Yili in East China.
It is worth noting that just over 20 days ago, Youran Animal Husbandry signed a contract with Lingtai County in Gansu Province, and the two sides will cooperate in the construction of the "1+1" 20,000 high-yield dairy cow pasture project of Youran Animal Husbandry and Lingtai. The total investment of the project is 720 million yuan, and will produce about 130,000 tons of high-quality fresh milk per year after completion.
In less than a month, Youran Animal Husbandry has successively laid out two major pasture projects. In the past year, Youran Animal Husbandry has formally acquired six farms of Fonterra, and is building a number of pastures in Inner Mongolia, Henan, Shandong, Anhui, Xinjiang, Heilongjiang and other places. Behind this, we can also see Yili's determination to accelerate the layout of the upstream and the construction of milk sources.
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