September 15, 2006

China's growing milk appetite offers fat profits to dairy firms

No other company better reflects China's growing appetite for milk than Mengniu Dairy, whose net profit in the first-half rose 39 percent and share price more than doubled in the past year.

Mengniu, China's biggest dairy company, reported net profits last week at US$43.2 million.

China's dairy sector is expected to expand 20 percent to 25 percent this year, according to various industry estimates.

The fast-growing sector already has US$7.5 billion in annual sales and investment.