Chinese infant formula maker Beingmate has announced plans to invest a total of CNY155m (US$25.4m) in the construction of a large-scale dairy farm.
The company said the move would secure the supply of “high-quality milk” for its infant formula operations.
The farm will house 4,400 head of cattle and is expected to produce 23,800 tonnes of milk annually, the company said in a statement yesterday (15 August).
The move comes as the infant formula category in China comes under increasing scrutiny. In a bid to improve safety standards and consumer confidence in the quality of domestic products, regulators have stepped up oversight of the production process.
In what has been termed a “dual approach” Beijing is also pushing for consolidation in the industry. According to local reports, the Ministry of Industry and Information Technology (MIIT) has indicated that it hopes to reduce the number of manufacturers to 3-5 firms with revenues exceeding CNY50bn by 2018.
See Also:
In a separate announcement, Beingmate said first-half operating profit rose 25.2%, while net profit was up 94.2% in the period.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataLast week, a government investigation ruled Beingmate was among a clutch of producers that had fixing formula prices in China. However, Beingmate was in a group of three firms, including Nestle, which were not fined after co-operating with the probe.