China Plans to Build Massive Dairy Farm to Supply Milk to Russia

Published Date : Jul 14, 2015

In a Chinese-Russian business venture, a 100,000 cow dairy farm is underway in northern China to supply milk to Russia. 

Last week, officials at Heilongjiang Province made announcement about the commencement of construction, which is backed by a Russian enterprise, Severny Bur, which is better known for production of miming equipment, and the Chinese enterprise Zhongding Dairy Framing.

The construction for the project has already started in Mudanjiang, which accounts a population of two million.

Russia has imposed ban on host of goods, which also includes dairy, traditionally imported from Western countries, that has led officials to look for alternative suppliers. Other sanctions prevent EU farmers to sell goods to Russia, which were brought in place due to the MH17 disaster.

The statement has been alarming for European Union dairy farmers, having apprehensions that the massive dairy will lead to loss of valuable market for their dairy goods.

An announcement by the chairman of umbrella group of European Union, Milk Working Oarty Copa-Cogeca, apprised on Farmers Weekly, UK publication that in the instance, which the dairy does not reaches full scale, the EU umbrella group would produce ever year 800 million liters milk. 

In Tasmania last year, all dairy farmers’ recorded milk amount of milk production. But according to founder and agribusiness expert of market intelligence portal ChinaAG, Loren Puette and Chinese food industry, the location of the dairy would help the oversupply of animal feed in China, such as, corn in the region.

Further, China is also working towards streamlining its dairy industry, consisting of several medium and small enterprises, which offoicials are expecting to rise to three to five large operating units.

Modern Dairy in China, having cattle count of 40,000 has largest operation, after completion the project is expected to be double in size.