[E-Daily Reporter SIN SOO-JUNG ] NamyangDairyProducts has signed a 10 billion won export agreement with a Mongolian food distribution company and is moving to expand its overseas business. Following Vietnam, the company is using an economic delegation to Mongolia as an opportunity to expand its local distribution network and broaden its export lineup to include infant formula and dairy products.

NamyangDairyProducts(003920)The company announced on the 10th that it had participated in the Korea-Mongolia economic delegation on the 9th and signed a three-year export agreement worth 10 billion won with Mongolian food distributor Maximus.

The core of this agreement is to broaden the range of traded products—which had previously centered on French Café coffee mixes—to include infant formula and dairy products. NamyangDairyProducts plans to supply the Mongolian market with infant formula brands such as Imperial XO and I’m Mother, as well as “Delicious Milk GT” UHT milk and De Vinci cheese.

Maximus is a company with a food distribution network and cold-chain infrastructure in Mongolia. NamyangDairyProducts intends to utilize Maximus’s local distribution network to strengthen its sales base in Mongolia and use this as a springboard for expansion into the Central Asian market.

Last April, NamyangDairyProducts also signed a three-year export business agreement worth 70 billion won with Vietnamese distribution company Phu Thai Holdings, following a South Korea-Vietnam economic mission. The agreement at that time outlined plans to expand the scope of cooperation from infant formula to include dairy products, coffee, and protein products.

The expansion of overseas partnerships is also driving export growth. NamyangDairyProducts’ exports in the first quarter of this year reached 16.4 billion won, an 81% increase compared to the same period last year. Exports of infant formula rose by 54%, while exports of other product categories—including coffee and protein products—increased by 136%.

The domestic B2B business is also showing signs of recovery. The average daily supply volume of whole milk by NamyangDairyProducts’ FS Business Division increased by 125% in the first quarter of this year compared to 2023. Sales for the FS Business Division in the first quarter of this year also rose by 13% year-over-year. The FS business supplies products to corporate customers, including café franchises, institutional food services, and military supply contracts.

The company is also expanding its product lineup. NamyangDairyProducts has expanded its protein brand, TakeFit, from ready-to-drink (RTD) beverages to the functional energy gel “TakeFit Booster.” It is also broadening its portfolio of fermented milk and protein products by introducing items such as Bulgaris Greek Yogurt (sugar-free) and protein products.

Kim Seung-eon, Chief Executive Officer of NamyangDairyProducts, stated, “We consider it significant that, following Vietnam, we have established a foundation for strategic cooperation in Mongolia through a government economic delegation.” He added, “Building on this agreement, we will expand our existing cooperation—which has centered on instant coffee—to include infant formula, UHT milk, cheese, and other dairy products. Leveraging the quality competitiveness of our domestically sourced raw milk, we will further expand our K-Food business footprint in the global market.”