October 25, 2010

China offers dairy firms loan subsidies

China's Ministry of Finance (MOF) said Friday (Oct 22) it had given RMB190 million (US$28.4 million) in bank loan subsidies to the nation's dairy companies to ease their financial pressures this year.

Another RMB80 million (US$12 million) in such subsidies were also paid to the dairy companies last year, according to the ministry statement.

The subsidies will not only help dairy companies stabilise production and normalise their purchases of raw milk from dairy farmers, but also play a positive role in stabilising raising of milk cattle and protecting farmers' interests, the statement said.