China Mengniu Dairy Co. Might Buy Modern Dairy
China Mengniu Dairy Co. is considering buying Modern Dairy, a large raw milk producer. Since the melamine-tainted milk scandal, causing several infants to die and many children to become sick, Mengniu has struggled with a bad reputation, but having more control over milk supply might help to salvage it.
Buying Modern Dairy, China’s largest raw milk producer, would give Mengniu more control over its milk supply as concerns about safety in the nation’s dairy industry linger. Maanshan- based Modern Dairy generated almost all of its 735.6 million yuan ($116 million) of revenue for the six months through December from supplying Mengniu with unpasteurized milk.