Tianrun Dairy Registers Double-Digit Growths in Revenue and Net Profit 10-07-2023

On 24 Aug., Xinjiang Tianrun Dairy Co., Ltd. (Tianrun Dairy, Stock Code: 600419) has issued encouraging results for H1 2023:
Revenue: USD193.5 million (RMB1.4 billion), up 12.62% YoY
Net profit attributable to equity shareholders of the listed company: USD17.5 million (RMB125.8 million), up 16.55% YoY

Operation summary in H1 2023

Sales and distribution:
Tianrun Dairy sold 146,400 tonnes of dairy products in H1, up by 6.17 YoY, with 859 retail stores in China selling its product range
In expansion to markets outside XUAR, the firm followed distinctive marketing strategies in different regions— Shandong, Guangdong and Jiangsu provinces were the first to sell its established product range, with Shangshai selected as the target market for its new product range
Tianrun Qiyuan Dairy Co., Ltd. (Tianrun Qiyuan) - a sales JV it set up in 2022 with Shandong Qiyuan Development Group Co., Ltd. based in Qihe County, Shandong Province - started selling products there and into the Beijing-Tianjin-Hebei region, through cooperation with state-owned retailers and supermarkets
In May 2023, Tianrun Dairy completed a buyout of Alar Xinnong Diary Co., Ltd. with USD45.4 million (RMB326.0 million) to strengthen its supply chain. Alar is an integrated business with 8 farms holding 14,000 Holsteins, a liquid dairy factory and a milk powder factory producing 60,000 t/a of ambient dairy products (UHT milk, milk beverages), 40,000 t/a chilled dairy products and 8,000 t/a WMP, mainly selling in Xianjiang, to Zhejiang Province and the Pearl River Delta region. In Nov. 2022, Alar was certified to produce organic milk powders
In H1 Tianrun Dairy launched 16 new products, aiding its growth for the period

Tianrun Dairy owns 26 largescale dairy farms (incl. the 8 from Alar Xinnong Diary) with a total dairy herd of 63,700 head as of H1
Its farms produced 96,700 tonnes of raw milk, accounting for 68.94% of the company's requirements for processing; its yield per cow averages 9.54 t/yr, with improved levels of both fat and protein reported
Table Tianrun Dairy's Revenue Split by Product Category and Region, H1 2023
Item Revenue, USD million Proportion YoY Change
Total 193.1 100.00% 12.50%
By Category
Ambient dairy products 108.7 56.30% 20.40%
Chilled dairy products 78.1 40.50% 5.00%
Dairying products 5.7 2.90% -7.20%
Others 0.6 0.30% -34.50%
By region
Xinjiang 107.1 55.50% 6.90%
Outside Xinjiang 86 44.50% 20.20%
Source: Tianrun Dairy's report for H1 2023

"Xinjinag Milk"

Xinjiang Uygur Autonomous Region has a quality grassland area of 860 million mu, accounting for 22% of the national total. It is China's 2nd largest dairy region in terms of farming area and cattle numbers, after Inner Mongolia Autonomous Region.

The milk produced in the region by local brands is well-known nationwide for its rich and creamy taste. However, this niche category has not yet been fully exploited because of insufficient generic marketing in a national market where competition is intense and industry leaders are financially strong. By contrast, most of Xinjiang businesses are small scale and limited in the scope of their distribution and marketing capabilities. There are only a few Xinjiang brands which have managed to scale up, notably Tianrun Dairy, whose recent growth has stemmed from its greater integration, and Xinjiang Xiyuchun Dairy Co., Ltd. which is currently applying for IPO.

In 2022, there were 60+ dairy processors registered in Xinjiang, with a collective revenue of less than USD1.3 billion (RMB9.0 billion). Their dairy product sales outside the region came to 250,000 tonnes, valued at less than USD417.9 million (RMB3.0 billion).


For more information,please check our Dairy Products China News.

About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & feed and life science markets. Founded in 2001, CCM offers a range of content solutions, from price and trade analysis to industry newsletters and customized market research reports. CCM is a brand of Kcomber Inc.

For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.

Subscribe to our Newsletter


Next Press