Arla’s investment in Chinese dairy delivers huge gains

The value of Arla’s stock in China’s largest dairy, Mengniu, has risen 65 percent, making Arla’s investment of 1.8 billion kroner now worth just under 3 billion kroner.mengniu-arla

“We are very pleased,” Fred Juulsen, the head of Arla’s operations in China, told Jyllands-Posten newspaper.

These are heady times in the Chinese dairy industry, as demand is soaring due to the continued growth of the Chinese middle classes, but Mengniu’s success has still taken experts by surprise.

The company’s turnover has increased by 20 percent, while earnings have improved by 27 percent.

Source: Copenhagen Post

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