SHANGHAI - Chinese milk powder makers, including Inner Mongolia Yili Industrial Group and China Mengniu Dairy, are set to get 30 billion yuan (S$6.1 billion) in official funds to support sector consolidation, media reports have said.
As well as Yili and Mengniu, the first group of companies to benefit would include Feihe International, Heilongjiang Wondersun Dairy and Treasure of Plateau, the official China Business Journal said in its Saturday edition, citing an unidentified source.
The authorities have said that they want to consolidate the domestic milk powder sector to increase the ability of companies to compete with international rivals who dominate the lucrative premium end of China's US$12.4 billion (S$15.5 billion) infant formula market.
Officials at Yili, Mengniu and Feihe were not immediately available for comment.
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