Founded in 2005, Ma Anshan Modern Farming raises dairy cows and sells raw milk to dairy companies that produce branded consumer products. The company currently has 14 farms across China, and it is planning continued growth to strengthen its industry-leading position at the forefront of a shift toward large-scale dairy farms in China. Recognizing a growing concern and interest in food safety and quality in China, KKR invested $150 million in Ma Anshan in the beginning of 2009.
KKR has worked with Ma Anshan’s leadership team to apply the latest farming techniques and supply chain enhancements for the benefit of Chinese consumers, and to improve farms’ milk quality, productivity and profitability. KKR Capstone has worked on the ground at remote farms for 16 months to develop and implement initiatives ranging from optimized feed purchasing to improved breeding management. On corn silage purchasing, for example, the team worked with the company’s purchasing managers across all 14 farms to implement an end-to-end procurement process that could meet the increasing demand for high-quality feeds. Through KKR’s global network, Ma Anshan was able to work with world-class dairy farm experts to develop and introduce best practices in farm design, construction and operations. These processes accelerated the herd’s growth and led to healthier, more productive cows, and high-quality milk that nourishes and protects the public.
In November 2010, Ma Anshan Modern Farming successfully completed its initial public offering, raising $448 million. The company is now the largest publicly listed dairy farm in China.