Source: Guangzhou Daily, ChinaScope Financial (Data)
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Mengniu Dairy Co., Ltd. (2319.HK) recently
formed a wholly-owned subsidiary named Inner Mongolia Mengniu Fuyuan Farming
Co., Ltd., which plans to invest approximately CNY 3.5 billion in the
construction of large-scale pastures in Northeast China, Hebei province, and
Inner Mongolia autonomous region.
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In Mengniu Dairy’s original pasture expansion
plan, their pasture target would be met in 2016 or 2017. This deadline has now
been moved to 2015.
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The import of cows for dairy production has
increased rapidly recently. Given quality problems of domestic dairy products,
the Chinese government has enhanced its support to the sector. Preferential
treatment in terms of taxation, loan and project approval will be offered to
dairy companies which import cows.
China’s milk production has increased from 3.7 kg/capita in 1990 to 26.7
kg/capita in 2010
