Within the next five years the Ministry of Industry and Information (MIIT) of China aims to reduce the number of domestic dairy companies through mergers and acquisitions and further the growth of between three and five large companies with annual revenues in excess of US$806.5 million. The move aims to increase the country’s global competitiveness, regain consumer trust, and improve the quality of infant formula. Currently there are a total of 127 infant formula companies in China with a total annual output of 600,000 tons. The MIIT plans to reduce this number to approximately 50 as China’s cabinet has required that the safety of infant formula milk powder be strictly controlled under drug regulations.
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