Modern Dairy Biodiversity Policy

As a leading dairy cattle farming operator and raw milk producer, Modern Dairy is committed to providing high-quality fresh milk and dairy products, while protecting and restoring the biodiversity of the areas where we operate. We recognize that biodiversity is essential for maintaining ecosystem services, promoting sustainable agriculture, enhancing social well-being, and addressing challenges such as climate change.

This biodiversity policy applies to all Modern Dairy’s operating areas, as well as our suppliers. The policy established in this statement take effect from the date of its approval and disclosure.

1. Commitments

To protect biodiversity, we commit to:

Strictly comply with national and local environmental protection regulations and requirements for all production and operation activities.
Persist in advancing the sustainable development of our business, respecting the rights and interests of local communities and stakeholders.
Avoid conducting business activities in protected areas with important biodiversity values.
Carry out any land development projects only after obtaining land permits.
Adopt scientific methods and best practices, assess, and monitor the impact of our activities on biodiversity, and take appropriate measures to reduce negative impacts and increase positive impacts.
Optimize our business operations such as feed cultivation, feed processing, dairy cattle breeding, raw milk production, etc., to improve resource utilization efficiency, reduce waste emissions, lower carbon footprint, and minimize ecological disturbance.
Refrain from exploring or developing statutory special protected areas, to avoid irreversible damage to their ecosystems and biodiversity.
Respect statutory special protected areas, and refrain from conducting any activities that may damage their natural and cultural values within their scope.
Avoid causing negative impacts on threatened and protected species, and do not use or trade any wildlife products from illegal sources.
Refrain from converting high conservation value areas, i.e., areas with important ecological, social, or cultural values, such as forests, wetlands, natural grasslands, etc.
Support the United Nations Sustainable Development Goals (SDG) initiative, especially Goal 13 (Climate Action), Goal 15 (Life on Land) and Goal 17 (Partnerships), and cooperate with governments, non-governmental organizations, research institutions, social groups, etc., to jointly promote the protection and restoration of biodiversity.
Support and participate in biodiversity-related research, education, training, publicity, and other activities, and enhance the biodiversity awareness and capacity of our employees, partners, customers, and the public.
Continuously reclaim or rehabilitate the habitats and disturbed lands in all farms and operating sites to maintain soil health, prevent soil erosion, and increase carbon sinks. We analyze the impact of production activities such as excavation, filling, etc. on the local original landform and original vegetation, and minimize the impact on the ecological environment through measures such as strengthening protection and greening projects.
Resolve complaints and conflicts through open, transparent, and consultative procedures, and acknowledge legal and customary land tenure.
Implement nature-based solutions, support landscape restoration and long-term protection of natural ecosystems.
Sign land transfer agreements with the local area and obtain approval documents such as the “Registration Form for Scale Livestock and Poultry Farming” from the relevant local departments, to ensure that the land use rights are legal and compliant. In the case of land transfer, relevant agreements must be signed with the villagers of the relevant community, clarifying the rights and obligations of both parties, respecting, and protecting the rights of the residents, and avoiding disputes.
In accordance with the provisions of the “Environmental Protection Law of the People’s Republic of China”, we carry out “public participation” activities during the project construction preliminary stage (during the environmental assessment procedure), and issue “public participation questionnaires” to fully understand the project situation.

2. Land Reclamation Targets

Ensure that during production and operation, simultaneous reclamation work is carried out in all operational locations within disturbed areas.
In the planting project in Togtoh County, a combination of various comprehensive measures for saline-alkali land management is employed, aiming for gradual improvement in soil salinity levels over a period of 3 to 5 years.
Efficient water-saving irrigation techniques is implemented in the 53,000 acres of Togtoh County Park along the Yellow River basin. By combining land leveling with ridge planting and furrow sowing, a water-saving rate of over 20% will be achieved. Additionally, this approach will reduce water waste caused by excessive irrigation, promoting high-quality grassland development in the Yellow River basin.

3. Biodiversity Protection Measures

3.1 Scientific Site Selection:

Assess environmental and biodiversity impact: Conduct a comprehensive investigation of the social environment, geographical environment, biological resources, population, traffic conditions and municipal planning of the area and track data changes, effectively identify the environmental risks and water pressure risks of the project site, confirm that the land attribute is not basic farmland, does not belong to the water source protection area for domestic drinking water, scenic spots, and the core area and buffer zone of natural reserves; does not belong to urban residential areas, cultural education and scientific research areas and other population concentrated areas; is not in other prohibited areas stipulated by laws and regulations; does not belong to areas with serious natural environmental pollution. It should be combined with planting industry, and animal manure should be utilized. The surrounding area should have sufficient space and drainage conditions for harmless treatment of manure and sewage on site. Perform local soil capacity, atmosphere, water, and noise environmental quality evaluation in accordance with the “Soil Environmental Quality Construction Land Soil Pollution Risk Control Standard (Trial)” (GB36600-2018), “Environmental Air Quality Standard” (GB3095-1996) second-level standard, “Groundwater Quality Standard” (GB/T14848-2017) and “Sound Environmental Quality Standard” (GB3096-2008).
Avoid environmental and biodiversity risks: Based on national standards such as the “Regulations on Pollution Prevention and Control of Large-scale Livestock and Poultry Farming”, “Technical Policy on Pollution Prevention and Control of Livestock and Poultry Farming Industry”, “Technical Specifications for Livestock and Poultry Farm Design”, “Animal Epidemic Prevention Conditions Review Measures”, “Technical Guidelines for Calculating the Land Carrying Capacity of Livestock and Poultry Manure”, etc., fully consider the negative impact of production activities on the ecological environment, and ensure that they are far away from prohibited areas, water sources, ecological protection areas, residential areas and scenic spots and other environmentally sensitive points. At the same time, follow the requirements of the “Environmental Protection Law of the People’s Republic of China” and carry out public participation activities during the project construction preliminary stage (during the environmental assessment procedure), and issue the “Public Participation Survey Form” to fully inform the project situation.
Avoid epidemic prevention risks: According to the “Animal Epidemic Prevention Conditions Review Measures (2022)”, “GB16568-2006 Dairy Farm Hygiene Standards”, “NYT 2079-2011 Standardized Dairy Farming District Construction Project Standards”, “NYT2662-2014 Standardized Farming Farm Dairy Cows”, “Dairy Cows Standardized Scale Farming Production Technical Specifications” issued by the Ministry of Agriculture in 2008 and other national policies and industry standards, we have formulated the safe distance of the farm site selection, to avoid the environmental and epidemic prevention risks brought by the farm. For example: it is not less than 500m away from urban residential areas, cultural education and scientific research and other population concentrated areas and villages; it is not less than 500m away from major traffic arteries such as highways and railways; there are no chemical plants, livestock products processing plants, slaughterhouses, veterinary hospitals and other enterprises and units that are prone to pollution within 1500 meters. The local area has a centralized harmless treatment facility for dead cows or allows the farm to handle them.
Comply with national and local regulations: To ensure the compliance of the farm project and ensure that our project is under national supervision, we prepare corresponding materials and procedures for the farm project in the early stage of the project in accordance with the requirements of the national and local governments, including the “Feasibility Study Report”, “Project Filing”, “Construction Project Site Selection Opinion Letter”, “Environmental Assessment Procedure”, “Safety Assessment Procedure”, “Construction Land Planning Permit”, etc.

3.2 Rational Layout:

Standardize land use: Obtain local land use permit approval and scale livestock and poultry farming filing and other approval documents from relevant departments, to ensure that the land use rights are legal and compliant; in the case of land contract transfer, sign relevant agreements with the collective of relevant community villagers, clarify the rights and obligations of both parties, respect and protect the rights of the people, and avoid disputes.
Plan scientifically: The overall layout is guided by the principles of rational layout, land saving, and appropriate reservation of development space, and the layout is arranged according to the upwind and downwind directions, following the rain and sewage diversion and clean and dirty separation construction, ensuring that each functional area is relatively independent, achieving the isolation of production and living management areas, effective epidemic prevention, ecological environmental protection, and production convenience. Increase the use of advanced technologies and equipment with no or less pollution, and control ecological damage from the source. The farm designs basic facilities in a way that does not interfere with the ecology and community environment and establishes underground pipelines to transport the liquid separated from the solid and liquid to the biogas slurry pond, which is used as liquid fertilizer for farmland after treatment.
Strengthen greening: Adopt the greening principle of combining points, lines, and planes, improve the greening rate within the project area, adopt the mixed planting form of high, medium, and low trees, shrubs and lawns, form a three-dimensional green space, fully exert the protection and activity functions of the green space and improve the environment, to keep the factory area beautiful and tidy, while enhancing air purification and reducing noise.

3.3 Continuous Monitoring and Rectification:

Atmospheric environment analysis: The main control is to reduce dust emission from construction, considering the local geographical and climatic characteristics, from the aspects of construction site conditions, management level, mechanization degree, etc., using closed tank trucks, timely sweeping, washing transportation channels, speed limit and other measures to reduce the adverse impact on the peripheral atmospheric environment.
Waste gas impact analysis: The main control is to reduce the exhaust emission from various mechanical equipment and transportation vehicles and the generation of volatile gases from building paints, coatings, etc.
Sound environment impact analysis: The main control is to reduce the noise pollution caused by the operation of various construction machinery and equipment and vehicle running, using the “Environmental Noise Emission Standard for Construction Site Boundary” (GB12523-2011) to evaluate the impact of construction noise on the sound environment of the surrounding area.
Water environment impact analysis: The main control is to reduce the production wastewater, by regularly maintaining the equipment, strengthening the supervision and prevention of wastewater, etc., to mitigate the environmental impact.
Ecological environment impact analysis: The analysis of the impact of production activities such as excavation, backfilling, etc. on the local original landform and the original surface vegetation, by strengthening the protection, greening engineering, etc., to minimize the impact on the ecological environment.
Soil health monitoring and tracking: Establish a system for regular soil testing and feedback tracking. Encourage affiliated farms to engage CMA-certified testing companies to conduct periodic soil tests on farm areas and surrounding cultivated lands affected by operations, based on environmental impact assessment reports, relevant national standards, and references like the “Soil Environmental Quality Risk Control Standard for Agricultural Land (Trial)”. This aims to control the impact of farm production activities on soil environments. Develop targeted testing frequencies according to local environmental conditions, exposure risks, and input usage, conducting biennial, annual or quarterly monitoring. Test for indicators such as cadmium, chromium, mercury, arsenic, lead, etc. in land where manure is applied. Additionally, selectively monitor nutritional indicators like organic matter, total nitrogen, total phosphorus, total potassium, alkali-hydrolyzable nitrogen, available phosphorus, and available potassium based on regional conditions. Through systematic analysis of test results, scientifically determine the timing, methods and quantities for manure application, practicing sustainable soil resource management.

3.4 Community communication:

Before settling in new areas, we adopt the principle of Free, Prior, and Informed Consent (FPIC), and actively conducts community impact assessments and communicate with the local village head and other village representatives, so that every resident has full knowledge of the impact of our farm operation activities on the local environment and livelihood:

We inform the villagers of the risks that the farm may bring to the local environment and residents after it is built, such as the risk of biogas slurry returning to the field.
We introduce to the village representatives the positive impact of our business on the local area, such as solving the employment and income generation of the local villagers.

We believe that through these efforts, we will contribute to the protection of the earth’s biodiversity and create long-term value for our enterprise.