Processing Facilities
Milk Processing Facility
American Dairy, Inc. conducts operations in The People's Republic of China ("China") through its wholly owned subsidiary, Feihe Dairy. Founded in 1962, Feihe Dairy is one of the leading producers and distributors of milk powder and soybean products in China. Feihe Dairy is located in Kedong County, China, and has been in operation since 2001. American Dairy also has a milk powder processing plant, BaiQuan Feihe Dairy in Kedong County, and also has a milk powder processing plant in the city of QiQiHaEr, Heilongjiang Province.
All aspects of production of American Dairy's products are based on innovative and scientific practices designed to yield premium quality and wholesome tastes tailored to the Chinese market.
The production facility has:
- a daily milk processing capacity of 720 tons;
- three production lines for processing soybean milk powders; and
- three production line for processing milk.
This production facility employs approximately 500 production personnel.
American Dairy was awarded an ISO9002 quality Assurance Certificate in October 2000 for consistent quality of the milk products. In accordance with the requirements of ISO9002, American Dairy established a "Quality Assurance Handbook" that provides standardized requirements and procedures regarding the purchase of raw milk, its milk processing systems, storage and packaging standards, the distribution of its products, and employee training.
Dairy Farms
American Dairy has numerous supply contracts with small local farmers and ranchers in the geographic area of Kedong County . These farmers altogether have cattle grazing and use rights to approximately 514,640 acres of land in the Kedong County , of which 27% is arable pasture land. Historically, the milk industry in China has been very fragmented and segmented with most production being generated by farmers owning and milking one to ten cows. However, under arrangements with numerous small dairy farmers, American Dairy has been able to receive supplies of raw milk without having to make capital investments in farms and cattle. With economies of scale, American Dairy is able to make milk processing a more efficient and affordable process, passing the savings onto Chinese consumers.
Walnut Processing Facility
American Dairy obtains walnuts from Licheng province of Taihang Mountain, known as “Walnut Hometown” in China . These premium walnuts are processed in our newly built walnut processing facility, located in Shanxi Province of China.
Studies predict that the Chinese demand for walnut drinks approximates 100,000 tons/year, while present factories produce only 60,000 tons/year. American Dairy's new processing facility is capable of producing:
- 3,000 tons of walnut oil
- 4,000 tons of walnut powder
- 40,000 tons of walnut milk
which can satisfy the growing market demand.
Soybean Processing Facility
The 37,674 sq. ft. soybean mill is part of American Dairy's 10 acre milk processing plant in Kedong County, Heilongjiang Province, China. The workshop is a $3 million investment which adopts Japanese technology and efficiency. American Dairy's annual production capacity of soybean powder totals 7,000 tons.
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