Quality standards for baby formula will be as stringent as those of medical products, said Gao from the ministry. The criteria for milk source base construction, production conditions, equipment renovation, and environment control will also be improved. "Substandard enterprises will be forced out of business, or may have to merge with bigger companies," he said.
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"The stricter standards will facilitate the consolidation of upstream milk sources," said Song, "The mergers are going to be initiated by the companies themselves while the government plays a supportive role. Also, companies in different regions and of different ownership are allowed to be merged. With these measures put in place, Chinese baby formula companies will be able to form a production chain and eventually go global."
Song Kungang, director-general of the China Dairy Industry Association, said the Chinese dairy industry has gone through major changes in the past five years. Remarkable improvements have been made in equipment, technology, testing capacity, and milk bases owned by manufacturers themselves. Chinese baby formula is among the best in the world, he said.
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