Modern Dairy Water Management Practices
Modern Dairy keeps a watchful eye on the water stress risk and changes at all operating sites. Based on regional characteristics, impact of water consumption, local regulatory requirements, water resources characteristics, and the actual conditions, the Company, referring to official documents such as the 2021 China Water Resources Bulletin and the 2021 China Environmental Status Bulletin, has applied the WRI water risk map model to assess risks of water resources scarcity and water quality during the productive process, and drawn the water pressure assessment map. The Company tracks water resource risks in the operating areas in a timely manner based on the water pressure map and has developed targeted prevention and control measures to guide the planning and layout of the project.
Modern Dairy’s water consumption by region in 2023:
| Region where the farms are located | Total Water Consumption in 2023 (tons) |
|---|---|
| Saibei Region | 3,449,302 |
| Northeast Region | 1,226,736 |
| Chabei Region | 1,006,146 |
| Northern China Region | 1,701,268 |
| Central China Region | 2,461,768 |
| Eastern China Region | 3,515,908 |
| Bayan Nur Region | 421,253 |
| Northwest Region | 1,614,334 |
| Inner Mongolia Region | 1,646,388 |
| Total Water Consumption | 17,043,1021 |
Note1: Compared to the water consumption data statistics in the 2023 ESG report, we have expanded the water consumption statistics to include 7 new farms added in 2023, resulting in an increase in total water consumption.
In 2023, for Modern Dairy:
- 54.88% of total water consumption came from high water risk pressure areas.
- The proportion of milk production in water-scarce areas was 53.12%.
- The proportion of silage procurement in water-scarce areas was 50.18%.
- Water-related capital expenditure: Modern Dairy has implemented a series of water-saving measures to reduce water consumption and improve water use efficiency. In 2023, the company invested 1.8 million RMB to install precision sprinkler systems, which significantly improved irrigation accuracy and effectively saved 29,661 tons of water.