Chinese dairy Mengniu has indicated it plans to build between eight and 12 dairy ranches this year to ensure product quality.

The company said the ranches would vary from 1,000 to 10,000 head of cattle. They will be located in China's north-east and southern regions, as well as in Inner Mongolia.

Through the planned investment Mengniu said it would achieve its goal of 100% raw milk supplied by ranches and scaled farms in three years.

"To assure product quality, Mengniu has equipped itself with comprehensive and highly effective inspection systems by procuring advanced equipment," the dairy group said.

"At the same time it has recruited many high-calibre inspection professionals and they carry out tests on 367 food safety items involving inspection for raw materials and finished products round the clock. Every drop of milk produced at its facilities has passed 9 procedures, 36 control points and 105 indicators, thus the quality of milk exceeds the national standards."