China tightens dairy plant entry rules

China will impose stricter requirements for new dairy processing factories on 1 April in a move meant to rationalise the industry.

The National Development and Reform Commission (NDRC) released a list of entry requirements, which said that new projects should have a 24-hour processing capacity of more than 200 tonnes.
It also said that any new project should be at least 60 miles from existing facilities and the factory should have dairy sources equivalent to its production capacity. Fresh milk should account for 50% of the content of milk powder, while liquid milk should be produced with 100% fresh milk, it said.
The requirements aim to encourage dairy processing enterprises to grow through mergers and acquisitions and phase out facilities with a 24-hour capacity of less than 20 tonnes. The NDRC also specified requirements such as production techniques, equipment, sanitary conditions and product quality.