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upgrade. According to the USDA, the European Union (EU) re- mains the largest supplier of fluid milk to China, followed by New Zealand. Imports of cheese to China are predicted to grow by 17% to 155,000 MT in 2021, due to strong demand. The top cheese suppliers are New Zealand and Australia. The top two dairy firms established in China are Yili and Mengniu.


Focus on sustainability China has the world’s largest population, and with this come increasing environmental concerns – there is no doubt that China urgently needs to develop effective ways to motivate sustainable food consumption and production. Giant food firm Nestlé announced in late 2020 that it is in- vesting a further CHF53 million (US$ 49 million) in the coun- try, saying it will complete an expansion and upgrade of the Nestlé Dairy Farming Institute (DFI). The DFI will also play a growing role in the company’s drive to reduce greenhouse gas (GHG) emissions in its supply chain. A series of emissions reduction projects at the DFI’s own dairy farm will develop and showcase best practices, aiming to explore opportunities for carbon-neutral fresh milk. A paper by Jialing Yu and Jian Wu, associated with Renmin University of China, Beijing, states that GHG emissions in Chi- na account for 17% of the total GHG emissions. As the world’s largest producer and consumer of nitrogen fertiliser, China’s effort is essential for reducing N-related GHG. It further add- ed, “Technological innovation still remains the primary driver


of agriculture growth. In March 2018, China also undertook substantial institutional reform on the structure of central government, by establishing the new Ministry of Natural Re- sources to end the bureaucratic fragmentation of land plan- ning and integrating regulatory responsibilities of pollution control (including agricultural pollution) into the new Ministry of Ecological Environment, which is expected to fa- cilitate establishing a coherent policy system that attains agricultural–environmental objectives.”


Future dairy farm In China, most large-scale farms use modern production technology and feed management techniques to improve production efficiency and product quality. According to an action plan released by the Ministry of Agriculture and Rural Affairs in January this year, the government will continue to support farmers and farmer cooperatives; the plan aims to continue building or upgrading 1,500 dairy farms and 100 dairy processing facilities each year through 2022. A report by PWC states that China’s dairy farm modernisation is cur- rently highlighting standardisation, mechanisation, genetic improvement and farm scale. It added, “The next wave will be the shift to automated milking and feeding, and preci- sion dairy farming. These technologies will further improve efficiency, productivity and animal health... Automated milking systems [are] only used on an estimated 1–2% of cows in China.”


▶ DAIRY GLOBAL | Volume 8, No. 1, 2021 23


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