September 13, 2006

China to spend US$12.5 million to boost dairy industry

China's government is granting a RMB100 million grant (US$12.5 million) subsidy to its herders this year, according to China's Ministry of Agriculture.
     
The programme would subsidise herdsmen so as to raise more pedigree dairy cows to boost the country's dairy industry.

The lack of pedigree dairy cows have slowed the industry's growth, the ministry concluded in previous meetings.

About a million herdsmen in 178 counties in 22 provinces, municipalities and autonomous regions would receive RMB 30 yuan (US$3.75 ) for each European Holstein cow and RMB20 (US$2.5) for each superior domestic dairy cow breeds, the ministry said.

The money is expected to subsidise a total of 3.47 million pedigree dairy cow.

Last year, more than RMB10 million (US$1.25 million) was given by the government to fund the breeding of pedigree dairy cows in northern Inner Mongolia Autonomous Region and three other provinces.

China had 12.16 million dairy cows in 2005.