China's dairy industry is still bouncing back from a scandal last year that involved over 20 companies.
The economic climate index of the domestic dairy industry co-released by the National Bureau of Statistics and the Economic Daily on Wednesday showed that the industry is firmly on the recovery track. Production and sales of the dairy industry continued to pick up in the third quarter as well. Dairy output climbed eight percent quarter-on-quarter to 5.02 million tons. And sales revenue of the industry moved up 8.1 percent to 41.78 billion yuan ($6.12 billion).
Profits were also up in the last quarter. The industry realized 2.42 billion yuan ($353.46 million) in total profits, up 12.3 percent from a quarter earlier. Losses were at 24.2 percent, dipping 0.7 percentage points.
Indexes of accounts receivable, funds occupied by finished goods all rose considerably, and although some indexes witnessed a year-on-year fall, the decline was not sharp.
China's dairy industry is still bouncing back from a scandal last year that involved over 20 companies. At least three babies died and thousands more were hospitalized after they ingested tainted milk powder.
Song Kungang, director-general of the China Dairy Industry Association, was quoted by Xinhua as saying the industry benefited from governmental supervision through a series of laws, regulations and policies. The launch of new dairy products and restored confidence in dairy makers also made a difference, he added.
The report said the industry's recovery will quicken in the fourth quarter.
Major dairy companies all reported optimistic results in the first half.
Inner Mongolia Yili Industrial Group made 254 million yuan ($37.20 million) in net profits, up 117.57 percent year-on-year. China Mengniu Dairy's sales revenue reached 12.1 billion yuan ($1.77 billion), up 19 percent compared with the second half of 2008, with net profits climbing to 661.9 million yuan ($96.95 million).
Gao Hongbin, vice minster of Agriculture, said last week, the ministry had clamped down on 6,606 milk stations by the end of September in 2009, with more than 80 percent of milk stations reaching the required standards.
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