There is much exciting news for the dairy industry in this year's Government Work Report, which includes promoting the stable development of the agricultural industry, increasing the revenues of farmers and the supply of organic food, and expanding agricultural industrial chains.

"China's dairy industry has been undergoing a critical period of transformation and upgrading in recent years," said Pan Gang, a member of the Chinese People's Political Consultative Conference national committee and Chairman of Yili Industrial Co Ltd, while discussing the Government Work Report.

He added that he would like to give some suggestions on the deepening of agricultural supply-side reforms with examples from the development of the dairy industry.

"The milk industry's production chains are related, involving thousands of milk farmers and their cooperatives. Helping them shake off poverty and increase their revenues is the responsibility of our big dairy companies," said Pan.

Therefore, Yili has established a Pasture Cooperative Partner Development College, a Supplier Development College, and a Dealer Development College to help cooperative partners in the industrial chain make progress together. From 2013 to 2016, Yili helped milk farmers increase their incomes by 2.7 billion yuan ($391.8 million).

He advised governments to give more policy support to the leading agricultural companies and optimize industrial structures.

He urged the promotion of a scientific production system and highly-experienced managers leading major companies. Pan also encouraged using innovative results to promote the transformation and upgrading of the whole industry.

Pan Gang, chairman of China’s dairy giant Yili, works in his office. [Photo/dahe.cn]