September 27, 2011

China Mengniu Dairy Co Ltd spent RMB700 million (US$109 million) on milk source construction last year and will spend RMB900 million (US$141 million) this year.

The company disclosed that it planned to spend RMB3.3 billion (US$516 million) on milk source construction in the next five years. It will be the company's key to safeguard continuous performance rise by increasing raw milk supply from modern pasture and guaranteeing safe and high-quality milk sources.

China's milk industry saw growth at different rate by the end of August. China Mengniu Dairy took a leading position with its on-year growth of 28.7%. The company saw its performance rising for three successive years with record growth rate.

Mengniu Dairy attributed its performance to measures such as continuous optimisation of product structure and precise control over costs, among others.