Abstract
The recent economic growth in Inner Mongolia has brought about a rapid expansion of dairy production, a phenomenon that is associated with a newly effected integration between private dairy enterprises and dairy farmers. We refer to the result of this integration as the Private-Enterprise-Linkage (PEL) type of dairy farm. We selected the Inner Mongolia Yili Industrial Group Co. Ltd. as the subject for our case study. The study aims at the following: (1) to reveal the various impacts of a private dairy enterprise’s assistance to individual farmers as regards their management capability and production technology, and (2) to discuss options for issues that may arise in the future.
The survey indicates that the support extended by an enterprise to individual farmers results in a significant increase in both the milk yield and size of the farmer’s dairy cows. The survey also indicates three important necessities: first, the price mechanism of milk should be linked to milk quality in order to strengthen farmers’ awareness of milk quality; second, farmers should introduce improved technological processes by which corn silage is reserved; and third, a standardized system providing roughages and semen should be effected for a long-term development strategy.
