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China allocates $44m of subsidies to dairy farmers

(Agencies)
Updated: 2008-10-09 14:05

China's central government has set aside 300 million yuan ($43.93 million) in subsidies for dairy farmers after a devastating scandal over tainted milk.

The Ministry of Finance did not specifically mention the milk scandal though it noted in a statement on its website that the subsidies would be made to areas where milk has been discarded.

The ministry said that dairy farmers in Hebei, Liaoning, Shanxi, Shandong, Henan and the Inner Mongolian region -- would be granted subsidies. These are the areas hit hardest by the scandal over melamine tainted milk powder.

Melamine, normally used in plastics, has been found added to milk powder in order to create the appearance of higher protein content. The tainted milk powder has been found in products tested from major suppliers such as Sanlu Group, Hong Kong-listed Mengniu Dairy and Shanghai-listed Yili.

Numerous countries have banned imports of Chinese milk powder and other food products.

The Ministry of Finance said that the subsidies are also aimed at maintaining dairy cow breeding and promoting sustainable and healthy industrial development.