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Mengniu takes active part in global industrial chain development under Belt and Road Initiative

December 12, 2023


Abstract : Since the proposal of the Belt and Road Initiative, China Mengniu Dairy Company Limited has been actively engaging in the development of global industrial chain of the dairy industry and is committed to providing high-quality products and services to consumers at home and abroad through independent innovation, according to Li Pengcheng.

BEIJING, Dec. 12 (Xinhua) -- Since the proposal of the Belt and Road Initiative, China Mengniu Dairy Company Limited has been actively engaging in the development of global industrial chain of the dairy industry and is committed to providing high-quality products and services to consumers at home and abroad through independent innovation, according to Li Pengcheng, executive president of Mengniu, in the second Belt and Road Forum for Laos-China Cooperation held in Vientiane, Laos on December 7.

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The photo shows people gathering in front of a store with Aice ice cream advertisements hanging up in Southeast Asia.

When delivering a speech during the forum, Li Pengcheng shared his insights on how Mengniu expanded its business footprint in Southeast Asia. 

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The photo shows Li Pengcheng, executive president of Mengniu, delivering a speech.

"In 2018, Mengniu set up the Yoyi C factory in Indonesia, making it the first factory established by a Chinese dairy company in Southeast Asia. Over the past five years, this factory has built a full-fledged supply chain, from overseas milk source, overseas processing to overseas sales, gradually taking root in the international market. Its products have gained popularity in 12 countries and regions in Southeast Asia, providing local consumers with nutritious and delicious dairy options," said Li Pengcheng.

Mengniu prioritizes local employment, which has benefited local people while achieving its overseas business growth. For instance, at Mengniu’s Indonesian factory, over 90 percent  of the employees are locals, creating over a thousand job opportunities for the community. To better contribute to the society, Mengniu takes an active part in community development, as well as organizing public welfare and charity events.

In recent years, empowered by its brand influence and product popularity, Mengniu has launched many well-recognized brands, including Milk Deluxe, Yoyi C, and Bellamy’s, covering liquid milk, ice cream, milk powder, cheese and other categories. As a premium ice cream brand targeting the Southeast Asian market, Aice has been innovating its product offerings, improving its quality, and building its brand image. Over the past eight years, the total sales of Aice has reached nearly 10 billion yuan in the local market.

It is learned that Aice operates three ice cream factories in Indonesia and one in Philippines, which is the largest ice cream factory in Southeast Asia. These four factories have a daily production capacity of ten million ice creams.

In terms of innovation, Mengniu has won the Silver Award of China Patent Award. for its independently developed probiotic PC-01. This patented probiotic is used in Yoyi C, which are produced in Mengniu's factories including those in Indonesia. These products have reached ten overseas markets such as Singapore, where Yoyi C is now one of the favorite brands of local consumers.

As the global green and low-carbon transition speeds up, sustainable development, carbon neutrality and carbon peak have also become hot topics in the dairy industry. 

Since the beginning of this year, Mengniu has been implementing its GREEN strategy (Governance, Responsibility, Environment, Ecosystem, Nutrition), which aims at sustainable development. Through 15 topics and 28 actions, Mengniu is working towards carbon emission reduction in six areas of the entire supply chain, leading the dairy industry in green transition, according the company.  (Edited by Yang Linlin with Xinhua Silk Road, linlinyanglyn@163.com)

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Keyword: dairy Mengniu

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