Namyang Dairy Expands International Reach with Mongolia Export Deal
Namyang Dairy Products has secured a significant export agreement with Mongolia's leading food distributor, Maximus Distribution LLC. The memorandum of understanding was signed during the Korea-Mongolia Business Forum in Ulaanbaatar, marking a three-year deal worth 10 billion won ($6.6 million). The agreement aims to enhance the export of Korean food products, particularly focusing on dairy products like Korean raw milk-based infant formula.
Maximus Distribution, established in 1999, is a major player in Mongolia's food distribution sector, operating over 13,000 retail outlets. These include prominent supermarket chains such as Nomin and Orgil, as well as convenience stores like CU and GS25. This partnership follows Namyang's earlier expansion efforts in Mongolia, where it introduced the Take Fit Monster protein drink to major supermarkets.
The agreement with Maximus extends Namyang's previous focus on French Cafe instant coffee to a broader range of dairy products. Namyang's CEO, Kim Seung-eon, emphasized the strategic importance of this partnership, stating, "Building on the competitiveness of our Korean raw milk-based infant formula, we will expand cooperation across our dairy portfolio and strengthen the global competitiveness of K-food."
Namyang attributes its successful overseas expansion to efforts in strengthening corporate governance and improving core business competitiveness through a professional management system and enhanced compliance practices. The company's profitability-focused restructuring has been pivotal in securing such international deals.
Earlier this year, Namyang also secured a three-year, 70 billion won export deal in Vietnam, which was part of a government-led economic mission. The company sees the modern logistics infrastructure and cold-chain system of Maximus as crucial for the effective distribution of its products across Mongolia.
As Namyang continues to expand its global footprint, the collaboration with Maximus is expected to play a significant role in solidifying its presence in the Asian market. The deal not only signifies Namyang's growing influence in Mongolia but also highlights the increasing demand for Korean food products internationally.
