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New state policies will implement restrictions on new dairy manufacturers to fight industry oversaturation, China Business News reported on Tuesday, citing one insider from the dairy industry.
"We will put forward industry qualifications for dairy manufacturing to eliminate excessive and delayed productivity, especially for those unlicensed or unqualified after the environmental assessment," Wang Dingmian, an official from National Development and Reform Commission, said at the China's Dairy Development Summit Forum. The NDRC has also decided to call off expansion projects for local dairy producers.
According to Wang, China's dairy industry currently produces 50 million tons of milk each year, 20 million tons more than the amount required to meet demand. This redundant productivity can be as much as 40 percent to 50 percent higher than the actual need set by the market.
The spokesperson of leading dairy manufacturer Mengniu told China Business News that the upcoming state policy will have a positive impact on leading dairy enterprises. |
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