BEIJING, Feb. 21 (Xinhua) -- Listed dairy companies in China have actively joined the campaign to revitalize the domestic dairy industry in recent years and will make more efforts to promote the industry development, especially after the "No. 1 central document" prioritized the development of agriculture and rural areas and supported development of the dairy industry.
According to the document, China proposed to implement the dairy industry revitalization action and strengthen construction of the high-quality milk source bases, which, industry insiders believe, will optimize the industrial environment and help the leading dairy enterprises become bigger and stronger.
As a matter of fact, the "No. 1 central documents" rolled out by the Chinese central authorities in recent three years all mentioned the support to the dairy industry.
For example, in 2017, it proposed to comprehensively revitalize the dairy industry, focus on supporting moderately large-scale family farms, and guide the expansion of raw milk consumption. In 2018, it is proposed to focus on the quality in the agricultural field and make the home-grown dairy producers bigger and stronger.
This year, the government focused on the "milk sources" and proposed to strengthen the construction of high-quality milk source bases, upgrade small and medium-sized dairy farms, and improve the quality of the infant formula.
Earlier, in June 2018, the State Council, China's cabinet, released a document to guide the development of China's dairy industry in the coming years and make overall arrangements for the construction of milk source bases, processing and circulation of dairy products, supervision of dairy quality and safety, and consumption guidance.
Against such background, the listed companies in China have made more efforts to accelerate the business expansion.
For example, at the end of 2018, Xinjiang Tianrun Dairy Co., Ltd. (600419.SH) announced to buy a 30-percent stake in Tianrun Beiting Animal Husbandry Co., Ltd. and turned the latter into a wholly-owned subsidiary.
On February 14 this year, the listed company announced that its holding subsidiary, Fangcao Tianrun plans to purchase a batch of dairy cows for 45 million yuan.
Inner Mongolia Yili Industrial Group Co., Ltd. (600887.SH) has actively integrated high-quality milk sources in Europe, Oceania and the Americas. The dairy companies controlled by Yili are distributed in the three major milk source bases in the northwest, Inner Mongolia and northeast of China.
Beingmate Baby & Child Food Co., Ltd. (002570.SZ) has its own pasture with the all-industry chain monitoring and traceability systems in Anda City, Heilongjiang Province. The company said that in the future, it is necessary not only to strengthen the construction of high-quality milk source bases in its own pastures and increase the number of dairy cows as soon as possible to further increase the proportion of its own high-quality milk sources, but also to plan construction of new farms, expand the scale of pastures, and increase the quality of milk. (Edited by Hu Pingchao, hupingchao@xinhua.org)
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