Plan to Start Building 8 to 12 Large Scale Ranches during the Year to Achieve 100% Raw Milk Supplied by Ranches and Scaled Farms by 2015
Hong Kong, June 11, 2012 - (ACN Newswire) - China Mengniu Dairy Company Limited (the "Company") and its subsidiaries ("Mengniu" or the "Group") (HKSE: 2319), a leading dairy product manufacturer in China, today held an open day for media at its production base in Inner Mongolia. The tour included a visit at the Hehua Ranch, the Helin Ranch of China Modern Dairy, and Mengniu's Phase 6 production base in Helin. The media had an opportunity to closely witness the strict quality control processes over the entire production procedures from milk sources to packaged products.
With milk sourcing as its top priority, the Hehua Ranch has more than 1,000 top breed of dairy cattle, as well as an advanced dairy cattle identification device that facilitates scientific management over the daily lives of cattle. Similar to Mengniu's other ranches, the Hehua Ranch has milking machines installed in a totally enclosed environment, which ensures the safety and reliability of the production chain from milking to storage. Currently, the raw milk provided by the ranches and scaled farms accounted for approximately 80% of overall raw milk used. Mengniu is increasing the proportion of raw milk sourced from ranches, and plans to start building 8 to12 ranches during the year - varying from 1,000 heads of cattle to 10,000 heads of cattle - in China's northeast and southern regions, as well as Hebei Province and Inner Mongolia, achieving 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 for nearly RMB30 million. At the same time it has recruited many high caliber 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. In 2012, to further enhance its quality control, Mengniu has largely increased its investment in the inspection of raw milk and finished products.
Adopting modernised production management technology that meets international standards, all procedures from production to warehouse storage in Mengniu's Helin Plant are completely automated in an enclosed and bacteria-free environment. Mengniu's management system boasts intelligent features such as the fingerprint identification function of its electronic patrol system and a data storage function of its patrol stick. These capabilities enable the operators to be supervised remotely.
Ms Sun Yiping took up the role as the new CEO of the Company in April this year and has led the efforts to enhance the quality of Mengniu products. She has taken reference from the management experience of COFCO and readjusted and optimised the quality management system from the ranches to the dining table. Under her leadership, Mengniu has also implemented organisational restructuring on quality management and separated the formulation and implementation of quality standards. The restructuring will ensure that quality management can be fully executed based on the set standards. Mengniu will also develop strategic cooperative plans with world leading dairy enterprises to reinforce its effort to attain international standards of quality management.
About China Mengniu Dairy Company Limited
China Mengniu Dairy Company Limited (HKSE: 2319) and its subsidiaries manufacture and distribute quality dairy products in China. It is one of the leading dairy product manufacturers in China, with MENGNIU as its core brand. The Group's diversified products range includes liquid milk products (such as UHT milk, milk beverages and yogurt), ice cream and other dairy products such as milk powder. By the end of December 2011, the Group's annual production capacity reached 7.05 million tons. For more information, please visit www.mengniuir.com.
Source: China Mengniu Dairy Company Limited
Contact:
China Mengniu Dairy Company Limited Chris Kwok Tel: +852 2180 9050 Email: info@mengniuir.com Strategic Financial Relations (China) Limited Esther Lau Tel: +852 2864 4845 Email: esther.lau@sprg.com.hk
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