China dairy giants losses reach RMB3 billion in 2008

The melamine scandal caused by Sanlu infant milk powder has cost huge losses for China's other three leading dairy companies in 2008 which nearly reached RMB 3 billion (US$439.68 million).

The three companies are China Mengniu Dairy Company Limited, Inner Mongolia Yili Industry Group Co., Ltd., and Bright Dairy & Food Co., Ltd.

In an annual report issued on April 29, Inner Mongolia Yili reported operating revenue of about RMB 21.6 billion last year, adding 12.13 percent over a year earlier; net profits declined close to RMB 1.68 billion.

Insiders forecast that the cold dairy sector will benefit from the approaching summer season, which is expected to help raise income to pre melamine scandal level.