China will impose stricter requirements for new dairy processing factories on April 1 in a move meant to rationalize the industry.

The National Development and Reform Commission (NDRC) released a list of entry requirements on Thursday, which said that new projects should have a 24-hour processing capacity of more than 200 tonnes.

It also said that any new project should be at least 60 miles from existing facilities and the factory should have dairy sources equivalent to its production capacity.

Fresh milk should account for 50 percent of the content of milk powder, while liquid milk should be produced with 100-percent fresh milk, it said.

The requirements aim to encourage dairy processing enterprises to grow through mergers and acquisitions and phase out facilities with a 24-hour capacity of less than 20 tonnes. The NDRC also specified requirements such as production techniques, equipment, sanitary conditions and product quality.

Local governments are asked to refer to the requirements during project approval, land supply, environmental evaluation, loan applications, certification and registration of new dairy companies.

(Xinhua News Agency March 21, 2008)