24 Nov 2014

Dairy deal latest in Chinese investment

7:59 am on 24 November 2014

Chinese dairy giant Yili's plan to spend a further $400 million on developments at its South Canterbury processing site has capped a flurry of investment announcements coinciding with the visit of China's president to New Zealand.

As well as processing milk powder at its new Oceania production site near Waimate, Yili has plans for producing UHT or long life milk, packaging infant formula and processing other nutritional products. Yili has also signed an agreement with Lincoln University.

The memorandum of understanding is wide ranging and includes investigating new dairy farming and processing technology and improving the production and processing of dairy products here and in China.

In another research collaboration, Plant and Food Research and a Sichuan science academy will be operating a virtual laboratory to study kiwfruit.

Maori owned dairy company Miraka will increase its exports to China through a new three way partnership with one of China's biggest dairy companies, Mengniu, and Shanghai Pengxin, which bought the Crafar farms and now supplies Miraka with some of its milk.

Miraka expects to quadruple UHT milk production within five years at its site near Taupo.

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