Following the cooperation between Yili Group & Huishan Dairy, Mengniu Dairy announced their plans to invest in YST shares with a total value of 60 million USD.

According to the prospectus of YST Dairy Farm, beginning from the end of June 2013, the group currently owns and operates two oversize pastures as well as two large scale pastures with a breeding stock capacity of 38,788 cattle; while as of the end of 2012, the Group began running a total of four pastures feeding 37,000 cows and producing 460 tons of raw milk. The group’s average annual milk production of dairy cows per head amounted to 8.9 tons, 62% higher than average of the industry.

On the 13^th of November, Yili Group and Italy’s largest milk producers (Sterilgarda Alimenti S.P.A) officially announced that they reached a strategic cooperation in Shanghai. Now, Mengniu Dairy also has new plans of expansion with experts from the industry claiming those moves will solve the raw milk shortage situation in Chinese markets.

According to the data from the Ministry of Agriculture, during the first three weeks of October, the price of raw milk from the top 10 major producing provinces continue to rise at a small increment, the average price arising at 3.77 RMB/kg, rose 14.23% comparing with the same period of last month.

Source:  http://www.aastocks.com/sc/stocks/analysis/china-hot-topic-content.aspx?id=200000283860&type=21&catg=3