KKR, a leading global investment firm and CHD, an international alternative investment fund manager, which have both previously invested in Modern Dairy are partnering with the company once again in a joint venture to invest US$140 million over 18 months to build two new large-scale dairy farms in China to meet growing demand for premium dairy products. China’s total dairy consumption grew at 10% compounded annual growth rate (CAGR) over the past five year with premium dairy product consumption growing at between 10%-19%. The partnership plans to build two 10,000 cow farms located in the Shanghe country of the Shangdong province in China. KKR will hold 61.5% of the partnership, CHD will hold 20.5%, and Modern Dairy will hold 18%. The joint venture plans to buy surplus cows from Modern Dairy’s herd growth. Modern Dairy has 22 farms and a total of 180,000 cows.
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