Ausnutria buys shares in Dutch dairy providers

Cows graze in one of Ausnutria's fields in the Netherlands. Provided to China Daily

Chinese company's global plan seeks only world-class sources

The founders of Chinese dairy company Ausnutria have been mapping a globalized development strategy since the company was founded in 2003.

They source their milk from only world-class origins, a decision that "has ensured Ausnutria's robust growth" over the past decade, the company's executives said.

"The Netherlands boasts a long history of dairy industry and has great potential," said Yan Weibin, chairman of the company. "Ausnutria will be committed to the partnership with Dutch milk providers on one hand, and market development focusing on China and the United States on the other."

In March 2011, Ausnutria purchased a 51-percent stake in Dutch dairy company Hyproca. Founded in 1897, Hyproca is a renowned organic milk powder manufacturer and the largest goat milk provider in the Netherlands. It is also one of the earliest infant formula makers in the world.

Thanks to the acquisition, Ausnutria for the first time had a stable production source of its own. It transferred most of its orders from Australia and New Zealand to the Netherlands.

A year later, Ausnutria acquired the remaining 49 percent of Hyproca, making it a fully owned subsidiary.

Ausnutria upgraded the equipment in its three plants in the Netherlands, and invested 165 million euros ($187.7 million) in a new project in 2014, which will become one of the largest infant formula factories in Europe when completed, and will provide 120 jobs.

Ausnutria also acquired Farmel Dairy Business, a Dutch specialist in raw milk and dairy product purchasing and sales. The acquisition will guarantee reliable raw cow and goat milk supplies for the company for at least the next seven years.

The Ausnutria Hyproca facilities in the Netherlands now have a complete chain, ranging from raw milk collection to finished products and packaging, as well as research and development capabilities and quality control systems.

"Ausnutria has the advantage of a global production chain, and is serving the world market with its global resources," Yan said.

"Although a latecomer in the global market, Ausnutria has won its position with world-class quality products," he said. "Competitiveness is the basis of our success, and marketing service is the key to winning clients."

One of their hit products, Kabrita goat milk powder, has been approved for the US market after examination by the US Food and Drug Administration. The company is also promoting its latest Allnutria organic growing formula in the US.

Yan said the company is expanding its world sales network with goat milk powder leading the way.

"We never stop seeking close partnership opportunities with world-leading nutrition food research institutions, suppliers and service providers," he said. "We and some US companies are mutually complementary. Our sincere cooperation will help us better serve consumers and achieve our common goal.

"Without doubt, Asia is currently the largest milk powder market in the world, but we should not ignore the growth of other markets," he said, noting that Latin America, North America, Southeast Asia and central Asia are growing at 15 percent annually.

Ausnutria sells its products in more than 40 countries across the world, with 60 percent of its sales volume coming from its overseas markets. Most of the products are made in the Netherlands.

Comprehensive agricultural cooperation between China and the Netherlands will be an important agenda item during Dutch King Willem Alexander's visit to China this month. The cooperation also echoes the Belt and Road Initiative proposed by Chinese President Xi Jinping, as the maritime Silk Road starts in China and terminates in Rotterdam, the Netherlands.

When Xi visited the Netherlands last year, he called for stronger dairy cooperation between the two countries and expanded imports of Dutch dairy products.

The two countries also signed an agreement on dairy cooperation, according to which, dairy experts from the Netherlands will help Chinese companies improve their milk productivity and quality.

During a visit to China by Prime Minister of the Netherlands Mark Rutte in March, Yan was invited to a business party hosted by a Dutch trade delegation in Shenzhen, Guangdong province, and introduced his company's global development and future strategy to Rutte, who highly praised his presentation, according to the company.

Support and contributions from large companies like Ausnutria is integral to Sino-Dutch trade, Yan quoted Rutte as saying.

With an open attitude, the Netherlands will continue to cooperate with more Chinese companies to promote bilateral trade, the Dutch prime minister told the gathering.

The Netherlands is the third-largest European trade partner of China, with deals between the two countries totaling some 44 billion euros last year.

Currently more than 1,000 Dutch companies do business in China.

Increasing high-level official exchanges are expected to advance the cooperation between the countries in such sectors as agriculture, food and dairy products.

The Netherlands' dairy industry has a long history and considerable growth potential, and China is facing growing demand for high-end dairy products, alongside the development of the Southeast Asian, South Asian and South American markets, signaling an expanded market, according to Ausnutria's executives.

With enhanced cooperation with suppliers in the Netherlands and a focus on China and the US as main markets, Ausnutria is leveraging its resources worldwide to expand its world market and provide global food safety, the company said.

zhangzhao@chinadaily.com.cn

(China Daily 10/27/2015 page6)