August 28, 2006

 

China sets up its first organic dairy

 

 

China has set up its first organic milk producer, sowing the seeds of what could be an organic trend now permeating through the US.

 

The organic dairy, set up by Beijing Guiyuan Ecological Agriculture Development Co, was touted as China's first organic milk production base after receiving certification two weeks ago.

 

The farm, in Northwest Beijing's Yanqing County, even has music playing in the background, with cows grazing on grass which have never been sprayed with pesticide, drinking water fresh from the ground-wells.

 

As China's population becomes more affluent, more are concerned about the use of antibiotics, pesticides and synthetic hormones in their food.

 

Organic milk also have a higher Vitamin E, Vitamin A and antioxidant content than non-organic milk, making it more appealing to the health-conscious.

 

With fierce competition in China's US$11 billion milk market, producers are seeking ways to pull away from the competition, which has so far focused mainly on price cuts.

 

Guiyuan, however, seeks to buck the trend-- one carton of Guiyuan's milk would be three to five times dearer than milk from major Chinese producers Yili and Mengniu. 

 

Guiyuan said is targeting professional expatriates and high-salary locals who are concerned about food quality.

 

There is definitely a huge demand for organic milk in Beijing, since it is very popular in western countries and more foreigners are coming to Beijing, said Liu Yaqing, vice director general of the Agriculture Bureau of the Beijing Municipal Government.

 

Guiyuan's president, Wang Zhanli, launched a co-operative effort with the China Agriculture University to research and develop organic milk in 2004.

 

The company was certified in December 2005 to select 800 qualified cows to produce organic milk. After a six-month conversion period, Guiyuan was certificated organic by the National Certification and Accreditation Administration last month.