In recent times, reports about food safety issues have become a regular occurrence in China. Last year many scandals have been exposed which included restaurants serving food cooked with gutter oil. Gutter oil consist of recycled from kitchen waste, decomposed animal fat and organs from slaughter houses.
Reports about baby formula milk with insufficient nutrients had also surfaced. As a result of these incidents and more, food safety has become a controversial issue in the country for consumers as well as food manufacturers. Food companies in China and abroad have now stepped up their efforts to guarantee quality, especially in regard to identifying food sources.
Mengniu is the country’s largest dairy producer, it had invested 2.4 billion yuan and opened two operations in the Heibei province, in the month of August. Gong Bo, an industry analyst, said that the company’s new plants includes daily farms in which milk products are produced just near the cows that produce the milk; a move that follows the strategy of China Oil & Foodstuffs policy, which is Mengniu’s largest stakeholder. The new move is set to benefit Mengniu’s market competitiveness and profit margin
Bo also said that the company will directly manage the farm, which will help to provide safe and good quality milk. A similar move has been taken by McDonalds Corp, which is world’s largest food restaurant chain and has been closely cooperating with long term suppliers.