New Indonesia dairy plant to serve SEA market



One of China's largest dairy product manufacturers has launched a new dairy plant in Indonesia. Together with its dairy facility in Thailand, the Inner Mongolia Yili Industrial Group Co or Yili plans to synergise production in both plants to boost its dairy offerings to the Southeast Asian markets.
Located in West Java, the new Indonesia dairy will expand the company's production capacity in the SEA region. Phase I has a total capacity of 159 tons per day. After completing Phase II of the facility, the total capacity will double to reach 343 tons per day or four million units of ice cream. The new dairy strictly adheres to Yili's sustainable development guidelines and local standards. It has a wastewater treatment system built with a daily treatment capacity of 2,800 tons. Reclaimed water irrigates plants in the factory. The new facility also has an R&D centre that will work closely with local institutions and other Yili R&D centres across the globe to roll out innovative products. The company said it would also donate a new vaccination centre during the launch ceremony to help local communities fight against COVID-19.
According to Mordor Intelligence, the Asia-Pacific Dairy Market will grow at a CAGR of 3.12% during the forecast period 2020-2025. Research revealed that China is the most significant market for dairy, primarily driven by increased consumption of dairy products. Meanwhile, India and Indonesia are the fastest-growing markets driven by increased population. Rising demand for western dairy products as natural snacks, fermented dairy products such as yoghurt and sour milk, and product and packaging innovation drives the growth of the dairy market.
Lastly, the demand for "clean label" products and transparency in dairy products also spur innovation in the dairy products sector. (Image from Unsplash)

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