Inner Mongolia to spend 8b yuan to improve dairy industry

PUBLISHED : Monday, 22 June, 2009, 12:00am
UPDATED : Monday, 22 June, 2009, 12:00am

Inner Mongolia's government will build thousands of dairy farms to consolidate the autonomous region's scattered cow-raising industry, a move that could lead to better oversight and protect against another melamine health scare.

The region would spend 8 billion yuan (HK$9 billion) to build 2,000 dairy farms before 2012, Xinhua reported.

The plan, if well executed, could dramatically change the profile of the industry - more than 90 per cent of the region's 3.18 million cows are currently raised by farmers in small backyards. The new strategy came as part of the State Council's plan to overhaul the dairy industry in the wake of the melamine contamination scandal last September. The council ordered major milk supplying areas to build large-scale farms to make the milk collecting process cleaner and easier to monitor. The region's government admitted in the Xinhua report that the traditional method of raising dairy cows had created concerns about quality control.

Consolidating dairy production could solve the problem, as both government agencies and milk producers could more easily track the quality of milk.