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Arun Banner on path to build organic milk production area


Construction is speeding up of a massive organic milk and dairy product farming, production and processing center on an industrial scale in North China’s Inner Mongolia autonomous region, according to local officials.

The center, which is being funded by China’s dairy giant Yili Group, is located in Arun Banner, administered by Hulunbuir city in the autonomous region.

Yili has already pumped in 2 billion ($285.35 million) into the first phase of the Hulunbuir Yili organic dairy product project, to build a high-end intelligent organic dairy product processing facility with 22 production lines and will establish three large-scale pastures.

Local officials said that when completed, the plant is expected to process 1,800 metric tons of raw milk per day and produce 530,000 tons of liquid milk per year, generating a total annual output value of 4 billion yuan.

The second phase of the Yili project involves construction of a national-level integrated cow breeding and milk processing center, with the establishment of dairy farms and intelligent dairy processing plants.

This phase will, once up and running, raise 300,000 high-quality dairy cows and produce 4,000 tons of raw milk per day.

Officials said that currently, production workshops, miscellaneous buildings, power workshops, refrigeration stations, sewage treatment stations and other structures are under rapid construction.

Zhang Peng, manager in charge of the project, said that due to the smooth progress being made, the Yili project is scheduled to start operating by the end of next October.

In addition to Yili’s huge investment in Arun Banner, other dairy groups are establishing pastures in the banner to exploit its high-quality grassland resources.