Abstract
The rapid development of dairy sector in Inner Mongolia is facing various challenges since 2007 as the feed price increased and melamine incident occurred in 2008. This paper investigates the economic state of family dairy farms and the impact of the melamine incident on them by using a field survey in a suburban area of Inner Mongolia. The results suggest that the low income of raising cows has become more and more obvious, which has seriously influenced the sustainable development of cow husbandry industry. To effectively promote the development of the dairy industry, the following measures should be taken: increasing the number of dairy cattle, implementing means to increase the milk yield, and improving the education level of dairy farmers.
