Westland Milk Products Extends Milk Supply Agreement Indefinitely with Yili

Westland Milk Products, the New Zealand dairy co-op that was bought by Chinese dairy giant Yili in 2019, has agreed to extend its 10-year milk supply agreement indefinitely.

When Yili purchased Westland, it agreed to collect milk from farmers for a minimum of 10 years at a price equal to or higher than Fonterra's farm gate milk price.

The deal also meant Westland would pay a 10 cents premium to farmers for the 2024-25 and 2025-26 seasons, above Fonterra's price. Westland's CEO said the co-op's success was thanks to its farmers' professionalism and it wanted to give them confidence to continue investing in their businesses.