Tuesday, 19 March 2019 09:05

Competitive payout, more export channels for Westland farmers– Yili

Written by 
Yili CEO Jianqiu Zhang. Yili CEO Jianqiu Zhang.

Chinese dairy giant Yili says Westland Milk Co-op suppliers will benefit from a competitive milk payout and greater export opportunities.

Westland and Yili last night signed a conditional agreement that will see Inner Mongolia Yili Industrial Group Co Ltd offer to buy 100% of the company for $588 million.

The deal follows a lengthy competitive process run by Westland.

Yili chief executive Jianqiu Zhang says the offer, if accepted by shareholders, would result in an immediate cash windfall to farmer shareholders, as well as a competitive milk payout.

Westland and Yili would also be able to share the expertise each entity has developed over many years in the industry, which will lead to increased innovation, Zhang said.

“The Yili Group sees our offer to Westland farmer shareholders as very much a partnership arrangement,” he said.

“We believe we are offering farmer shareholders a stronger financial future, and greater access to international markets. In return, we are asking to become the custodians of one of New Zealand’s most trusted brands – Westland Milk – with all the knowledge, history and expertise that comes along with that.”

Zhang said Yili had already demonstrated its commitment to local dairy farmers and its determination to be a good corporate partner with New Zealand dairy farmers.

“At our Oceania processing plant at Glenavy, we have increased the average price to local dairy farmers because we believe that supporting our farmers and their families is the best way to achieve our business goals.

“This proven track record is what Westland farmer shareholders and suppliers can expect from us if they accept our offer.

“Yili believes it has made the best offer to farmer shareholders, and has backed that up by offering a very competitive milk payout.

“We are very hopeful that the farmer shareholders will support our offer, and that we can work together for a strong and secure future for Westland Milk.”

More like this

Top dairy CEO quits

Arguably one of the country's top dairy company's chief executives, Richard Wyeth has abruptly quit Chinese owned Westland Milk Products (WMP)

Wrong, again!

OPINION: This old mutt well remembers the wailing, whining and gnashing of teeth by former West Coast MP and Labour Agriculture Minister Damian O’Connor when Chineseowned Yili took over the troubled dairy company Westland Milk a few years back.

Milk price certainty

Westland Milk has reaffirmed its commitment to pay farmer suppliers 10c above Fonterra farm gate milk price for the following two seasons.

Featured

Being a rural vet is ‘fantastic’

Everyone from experienced veterinarians and young professionals to the Wormwise programme and outstanding clinics have been recognised in this year’s New Zealand Veterinary Association Te Pae Kīrehe (NZVA) awards.

Editorial: Long overdue!

OPINION: The Government's latest move to make freshwater farm plans more practical and affordable is welcome, and long overdue.

Fonterra names Templeman-Jones to Mainland Group board amid divestment

As part of preparing for a potential IPO in relation to the divestment process for its global Consumer business and integrated businesses Fonterra Oceania and Sri Lanka, Fonterra has named Anne Templeman-Jones as chair-elect of the Audit and Risk Committee for the Mainland Group board.

National

Lame stories from a country vet

Everyone from experienced veterinarians and young professionals to the Wormwise programme and outstanding clinics have been recognised in this year’s…

Machinery & Products

Gongs for best field days site

Among the regular exhibitors at last month’s South Island Agricultural Field Days, the one that arguably takes the most intensive…

Amazone extends hoe range

With many European manufacturers releasing mechanical weeding systems to counter the backlash around the use and possible banning of agrochemicals,…

Gong for NH dealers

New Holland dealers from around Australia and New Zealand came together last month for the Dealer of the Year Awards,…

» Latest Print Issues Online

Milking It

Less hot air

OPINION: Farmers won't get any credit for this from the daily media, so Milking It is giving the bouquets where…

Dollars go offshore

OPINION: The Advertising Standards Authority’s 2024 report revealed that not only is social media rotting our brains, it is also…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter