China Mengniu Dairy

China Mengniu Dairy is one of China's largest dairy companies, with an annual production capacity of 10.27 million tonnes of milk from 43 domestic production locations and one each in Indonesia and New Zealand. Most of the company's revenue comes from liquid milk, with ice cream, milk formula and cheese comprising the rest of its diversified product portfolio. In December 2019, Mengniu a completed the acquisition of Bellamy’s Australia Limited, an Australian organic infant formula and baby food provider

Baseline assessment

Environment

Started the journey

Nutrition

Started the journey

Social inclusion

Started the journey

Summary

China Mengniu Dairy publicly discloses commitments across numerous topics, particularly in the environment dimension. However, on topics including food loss and waste, GHG emissions and fertiliser and pesticide use, the company does not link its reporting on various metrics to time-bound targets. On freshwater use, the company commits to an annual year-on-year water consumption reduction of 0.5%, and reports on its progress towards this target. It also has a robust animal welfare policy and system in place, which it commits to implementing on 100% of its ranches albeit without making this time bound. In the nutrition dimension, China Mengniu Dairy has one of the most comprehensive commitments to increasing accessibility of healthy foods, covering 6,000 towns and 100,000 villages nationwide. The company’s commitment to food safety is also demonstrated by the numerous certification standards it holds, as well as the monitoring and compliance system in place to ensure these standards are maintained. While China Mengniu Dairy reports on a number of organic and reduced fat products it released in 2019, it does not commit to or disclose targets for increasing the proportion of healthy products in its portfolio. Similarly, the company does not commit to diversifying the proteins in its portfolio. Regarding social inclusion, commitments to prevent and eliminate child and forced labour in the company’s operations and supply chain are not supported by disclosure on the process used to ensure these commitments are upheld. Similarly, health and safety commitments do not cover the company’s supply chain, nor does the company disclose metrics such as lost time injuries or work fatalities. China Mengniu Dairy offers regional programmes to improve smallholder producer productivity, but it does not commit to paying a living wage in either its own operations or supply chain.

Food and Agriculture Benchmark

The Food and Agriculture Benchmark will assess 350 keystone companies on the issues underpinning the food system transformation agenda. The benchmark’s aim is to stimulate companies to apply sustainable business practices throughout their operations as well as use their influence to encourage value chain partners to do the same. WBA has organised the food and agriculture value chain into six sub-sectors. These sub-sectors are also reflected in the methodology framework.

Food and agriculture revenue
CNY 79,030,000,000
(USD 11,439,721,000)
Major subsidiaries
n/a
Consumer brands
Mengniu

Value chain sub-sectors

Other benchmarks

The company is also included in the following benchmarks developed by WBA and our Allies. These benchmarks help to deepen our understanding on key issues and industries.