Dairy Industry

Re: Dairy Industry

Postby winston » Mon Mar 06, 2017 9:37 pm

China's Chefs Are Finally Falling in Love With Cheese

China's foodservice market is easier to penetrate for Fonterra and Friesland, as chefs trained in demo kitchens find ways to use dairy.

At $150 billion a year, China’s foodservice industry is the largest in the world after the U.S. and Japan, and western-style cuisine is growing in popularity


Fonterra sold the equivalent of 271 million liters (72 million gallons) of milk in consumer and food-service products to China in the quarter ended Oct. 31, a 36 percent increase from a year earlier.

The gross margin in China across both categories increased to 39 percent from 32 percent


Fonterra’s sales to caterers and restaurants there are increasing more than 10 percent a year, said Christina Zhu, Fonterrra’s managing director in China.

Sales of mozzarella cheese surged 66 percent last year.


China’s 360 billion-yuan ($52 billion) consumer dairy market is dominated by local suppliers Inner Mongolia Yili Industrial Group Co. and China Mengniu Dairy Co.


Source: Bloomberg

https://www.bloomberg.com/news/articles ... ith-cheese
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Re: Dairy Industry

Postby winston » Fri Apr 07, 2017 1:01 pm

not vested

<Research Report>Deutsche: China Dairy Industry Recovers; Buy for MENGNIU DAIRY, Yili

Deutsche Bank, in its report, said its channel check and NBS data indicated early signs of growth recovery for dairy products in China. This could be helped by improving demand and more balanced supply in 2017.

The broker kept Buy on both MENGNIU DAIRY (02319.HK) and Yili (600887.SH), with target price of HK$18.20 and RMB22 respectively.

The broker expected Mengniu to deliver higher earnings growth, driven by margin recovery.

The broker forecasted 20% earnings CAGR for Mengniu in 2016-18, helped by recovering industry growth and recurring net margin expansion from 3.8% in 2016 to 4.6% in 2018 (estimate).

First, the broker expected Mengniu's subsidiary CH MODERN D (01117.HK) to turn profitable in 2018, helped by recovering milk prices.

Second, Deutsche Bank expected Mengniu's subsidiary YASHILI INT'L (01230.HK) to turn a profit in 2018, helped by implementation of the new regulation and streamlining operations.

Third, the broker expected Mengniu's liquid milk margin to improve, benefited by operating leverage and a mix upgrade.

Source: AAStocks Financial News
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