2 days ago
- Business
- Otago Daily Times
Dairy revenue up: Yili Group
Zhiqiang Li
Upgrades to the Oceania Dairy plant in Glenavy have helped China-based parent company Yili Group boost New Zealand revenue growth, the company reports.
Yili Group-owned dairy companies Westland Milk Products and Oceania Dairy this week posted combined unaudited revenue growth of 16% compared with the same period last year.
Before tax profit growth for the first half of 2025 is 12% and Yili Group executive director Zhiqiang Li said profitability was expected to continue to climb for both companies well into 2026.
"Production capacity of high-demand, high-value products across Westland's Hokitika and Rolleston sites and ODL's Glenavy facility have undergone significant investment to capitalise on surging global demand for high-quality dairy products," Mr Li said.
Consumer butter production capacity at Hokitika has been boosted by 10,000tonnes, while increased skim-milk powder production capacity at Glenavy has also led to increased production of UHT Cream at Rolleston, with ODL cream now diverted to the Rolleston site.
Mr Li said both Westland and ODL, which since 2024 have also operated under a co-operative external sales arrangement, are well positioned to build revenue growth off the back of increased production capacity.
"Greater efficiencies and production capacity under this co-operative arrangement give us far more opportunities to optimise product mix and build on our high-value strategy," Mr Li said.
"Profits for the individual companies in the meantime will go through a consolidation period; however, both total revenue and profit margins are expected to continue to show healthy growth," he said.
— Allied Media
