Two large dairy farms will be set up in Shandong
Shandong Commercial Daily
to invest 140 million dollars, the site is located in the Shanghe Xinhua news agency, Beijing, September 24th, the United States private investment giant KKR, CDH investment and now On the 24 day, the animal husbandry company announced that it will invest 140 million US dollars in Shandong for the establishment of two large dairy farms in the next year and a half to provide Chinese consumers with high quality milk.
Lina, the president of the modern animal husbandry, said, "the increasing demand for high quality dairy products has led to a strong increase in the demand for high quality milk in large pastures. Following our previous successful cooperation, the modern animal husbandry has once again chosen to work with KKR and CDH to set up a new joint venture, which will help to meet the needs of the Chinese market for safety and quality milk. "
KKR, a global partner and President of Greater China, said: "today, the problem of food safety is still the top priority, and this investment will help to increase the supply of quality raw milk for Chinese consumers."
in the past five years, China's dairy consumer market has grown at a compound rate of 10% in the past five years, according to the market research agency Europe information consulting company. The demand for high quality dairy products is far higher than the overall market because of the continuous attention to food safety and the increasing awareness of health. Despite strong growth, China's annual per capita liquid milk consumption is still lower than 10 kg, while the annual per capita liquid milk consumption in Japan and the United States is 32 kg and 78 kg respectively.
it is learnt that the newly established joint venture plans to build two 10000 scale ranches in Shanghe County, Shandong province. KKR, CDH investment and modern animal husbandry will hold 61.5%, 20.5% and 18% shares respectively. The transaction is still subject to regulatory approval and is expected to be completed in the fourth quarter.
news link
KKR was the largest private investment company in the world in 1976, and as of June 30, 2013, KKR managed $83 billion 500 million. Founded in 2002, CDH is an international investment fund with a management fund of over US $10 billion.
KKR and CDH co invested in modern animal husbandry company in 2008. The company has now become a large animal husbandry group with 22 ranches and nearly 180 thousand cows and is listed on the Hongkong stock exchange in 2010.