The Inner Mongolia autonomous region, the biggest source of raw milk in China, will carry out a series of measures to tackle its recent milk shortage. The key measure in the plan will replace the current supply system, which is based on individual milk farmers, by creating milk farms that are owned by large dairy companies, said Hohhot Mayor Qin Yi during a panel discussion among delegates from the Inner Mongolia autonomous region at the annual sessions of the 12th National People’s Congress in Beijing…Full Article: China Daily Mar 2014

Key point

  • According to the article, by 2017, major dairies in Inner Mongolia (e.g. Yili and Mengniu) will source 70% of its raw milk supply from their own farms (i.e. vertically integrated)

ChinaAg Comment

  • Cow milk production primarily takes place in northern China, with Inner Mongolia region producing 9 million MTs (25% of China’s output) and Heilongjiang producing 5.4 million MTs in 2011

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