Yak Milk: Niche or Nightmare?
This is a case study involving ABCI, a wholly-owned subsidiary of Land O’ Lakes, with a purpose of providing international consulting services. ABCI, having acquired substantial international experience in joint ventures and partnerships, is visiting Hongyuan, Tibet in order to assess the feasibility of a yak milk dairy venture.
The nature of any export business would consist of yak meat and milk, although wool, hide, and other Yak by-products exist.
Key Issues:
1) Yak milk yield is low and seasonal, being approximately 10% of that of a dairy cow. Yaks thrive in the grassy “Plateau” areas. 60% of land is unsuitable for most crops. Many calves do not survive due to the harsh conditions.
2) Poorly educated Tibetan herdsman pose many barriers to any business model. Specifically their customs, culture, and religious beliefs, may undermine western- modeled advances.
3) The Chinese government is demonstrating its support by establishing the “Chinese Yak Industrialization Project”. However, infrastructure growth, i.e. roads, electric, tunnels, airport access, are slowly developing. China’s stated support is for the purpose of meeting the food needs of greater China and to provide financial assistance to the subsistence level of traditional Tibetan herdsman. Although a communist government may seek out the value inherent to capitalism, they remain communist.
4) Although dairy product use in China is increasing, especially for ice cream and yogurt, yak milk and other yak products have a small following. Yak milk is, however, considered ...