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Is Tianrun Dairy a small and medium-sized enterprise?
In terms of business scale, Tianrun Dairy's operating income is less than 2% of Yili's, and it is a regional dairy enterprise mainly in Xinjiang. Its products are mainly liquid milk, and large dairy enterprises have milk powder, dairy products (such as cheese), cold drinks and other products besides liquid milk.
In terms of sales, Tianrun's product transportation cost accounts for a relatively high proportion, because Tianrun is located in Xinjiang, which leads to the high logistics cost of product sales to the mainland market, while the milk source and processing of large dairy enterprises are distributed all over the country, shortening the distance between market and production. To sum up, Tianrun Dairy is a small and medium-sized enterprise.
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