China Firm Increases Goats Milk Production

Yayi International, a Chinese producer and distributor of goat milk formula products, has started construction of a deep-processing facility in the country’s Shaanxi Province.

Yayi says the facility will become the largest goat milk production base in China and that when production starts in 2010 it will increase its existing production capacity in Shaanxi Province by 400%.

The company expects the facility to be funded using proceeds from a $15m private placement raised from SAIF Partners III LP in June 2009, and cash flow from operations.

Yayi International CEO Li LIU said the move follows an increase in demand for goat milk in China following the melamine scandal.