Yili-owned dairy companies in New Zealand report 16% revenue growth, fueled by strategic investments in high-value products and production capacity.
Yili's New Zealand Dairy Assets Post Strong Growth
Yili-owned Westland Milk and Oceania Dairy see 16% H1 revenue growth, boosting 2025 outlook. File photo

Strategic Investments in High-Value Products Drive Double-Digit Revenue and Profit Increases for Westland and Oceania Dairy.

Yili Group-owned companies in New Zealand are demonstrating a robust growth trajectory, providing a powerful case study in strategic agribusiness investment. According to unaudited results for the first half of 2025, Westland Milk Products and Oceania Dairy (ODL) achieved a combined revenue growth of 16% over the same period last year. This impressive performance is a key indicator of a successful strategy focused on high-value, high-demand dairy products.

This double-digit revenue growth is directly tied to significant capital investments in production capacity. Westland’s Hokitika facility, for instance, has seen its consumer butter production capacity boosted by 10,000 tonnes. Simultaneously, ODL’s Glenavy facility has increased its skim-milk powder capacity, while the Rolleston site has raised UHT cream production by 20% to meet the growing demands of the Chinese market. These targeted upgrades are crucial in allowing the companies to capitalize on premium product segments.

The strong top-line performance is also translating to the bottom line, with a combined before-tax profit growth of 12% for the first half of 2025. This profitability is expected to continue climbing well into 2026 for both companies. The success is a direct result of Yili’s strategic vision for its New Zealand assets, proving that focused investment in advanced production capabilities can yield significant returns in the competitive dairy economics landscape.

A key driver of this success has been the implementation of a unified sales strategy. Since 2024, the companies have been operating under a collaborative external sales arrangement. This cooperative model is designed to create greater efficiencies and provide more opportunities to optimize the product mix, further building on their high-value strategy. This approach not only streamlines operations but also positions the companies to be more agile in responding to market demands.

The financial results of Westland and ODL are a powerful signal to the international dairy community. They demonstrate that in a mature market, strategic investment in premium product categories and an integrated sales approach are essential for unlocking strong revenue and profit growth. This model of leveraging local expertise with global market insights is a blueprint for sustained success in a rapidly evolving agribusiness sector.

Source: Farmers Weekly: Yili dairy companies set for strong revenue growth

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