A new program being launched in Ningxia will allow local farmers to lease out their cows to large-scale dairy cooperatives.
This will allow them to draw rent from the animals without being forced to slaughter their herds, as a number of small-scale dairy farmers have been forced to do to survive.
Wu Yanhu with an animal husbandry station in Ningxia says not only will the farmers benefit from not having to worry about milk prices, but the milk the cows produce on the large-scale farms is likely to be of much better quality.
"We do cellular testing on the conditions of both the cows and the milk they produce. We've found that cows belonging to private farmers lag behind due to the tougher environment the cows are raised on, as well as a lack of proper breeding skills."
Many of the large-scale milk producers in China are also reluctant to purchase milk from independent producers because of such concerns.
Yan Jianguo is the president of a Chinese dairy producer.
"We like to buy milk from pastures which have between one to three thousand cows. This way we know the pasture is our base throughout the entire management chain, from feeding to milking to the pasteurization of the milk. We are in-charge of it all."
On top of the new cooperative program, authorities in Ningxia are also setting aside 90 million yuan to help local farmers increase their competitiveness.
For CRI, this is Qian Shanming.
