On 13 Nov 2014, Yi li, one of the China’s largest dairy groups, signed a contract with the Dairy Farmers of America (DFA) to establish a factory in Kansas City which will have an annual output of 80,000 tons of milk powder. The plant will be the biggest milk powder producer in the United States. The registered capital is 0.1 billion USD, 30 percent of which is owned by Yi li and rest is held by DFA. Founded in 1998 and headquartered in Kansas City, DFA is America’s leading milk marketing cooperative.
In terms of the global dairy development the dairy market in developed countries such as America has reached saturation and is fiercely competitive while China’s dairy market still has great potential for foreign and domestic dairy companies. In line with this the US government is going to issue an act aimed at stimulating dairy production. Rick Smith, the CEO of DFA praised Yi Li’s management of pastures, production capacities and QA/QC SOPs, in addition to its technological and safety/quality testing capacities. Meanwhile, the chairman of Yi Li was optimistic in his hope to usher in an era he termed the “golden age of dairy cooperation between the two nations to better serve American dairy farmers and Chinese consumers.”
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