Shanghai Dairy Group, a subsidiary of Bright Dairy and Foods plans to go public independently rather than have its capital being invested into the listed Bright Dairy and Food stock-trading platform. Shanghai Dairy has also reached an agreement with Nestle worth several billion yuan to build a milk production line in northeastern China to supply milk to Nestle’s infant formula brands. As of the end of 2013 Shanghai Dairy owned 24 dairy farms, 45,000 cows on the mainland, and ranches in Shanghai, Jiangsu, Shandong, and Anhui. The company plans to build more farms in Heilongjiang, Anhui, Shandong, Hubei, and Chongqing in order to increase its cattle count to 100,000 head next year. The company also plans to integrate its industrial cattle raising operations from feed production, breeding, research, and logistics.
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