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Modern Dairy's Localization Procurement Policy

As a leading dairy farming operator and raw milk producer, Modern Dairy is committed to providing high-quality fresh milk and dairy products, while establishing long-term, mutually beneficial, and sustainable partnerships with our suppliers.

To achieve the goal of sustainable development, Modern Dairy actively implements a localization procurement policy, establishing long-term and stable cooperative relationships with local farmers, suppliers, and communities, and jointly promoting local economic development and social welfare.

The main contents of the localization procurement policy are as follows:

1. Feed Procurement

Modern Dairy prioritizes purchasing the required feed, equipment, services, and other materials from local sources, supporting the development of the local agricultural industry chain, reducing transportation costs and environmental impacts. Modern Dairy’s feed includes corn, soybean meal, cottonseed, oat grass, etc., which are crops or by-products that local farmers can grow or purchase. Modern Dairy signs stable feed supply contracts with local farmers, purchases their feed at market prices or more favorable prices, and provides technical guidance and quality assurance, helping them improve the yield and quality of their feed.

2. Equipment, Services and Other Materials Procurement

Modern Dairy also purchases the required equipment, services, and other materials from local sources, such as milking machines, transport vehicles, veterinary services, etc., providing stable orders and income for local enterprises, and promoting the development of local industries and services.

3. Entrusted Management of Milk Source

Modern Dairy and local farmers jointly establish milk source bases, providing technical training, quality monitoring, operation guarantee and other services, helping them improve the level and income of dairy cattle breeding. Modern Dairy selects areas suitable for dairy cattle breeding according to the local natural and human conditions, and signs milk source entrusted management agreements with local farmers, incorporating them into Modern Dairy’s milk source system. Modern Dairy provides excellent dairy cattle breeds, advanced breeding techniques, standardized management systems and other services for the milk source bases, and regularly conducts technical training and quality monitoring to ensure that the milk source bases meet Modern Dairy’s standards. At the same time, Modern Dairy assists the milk source bases in matching market channels and purchases their raw milk at market prices. This not only ensures the quality and safety of raw milk, but also increases the income level of farmers.

4. Supplier management

Modern Dairy establishes long-term cooperative partnerships with local suppliers, jointly formulates quality standards, environmental standards, and social responsibility standards, conducts regular evaluation and feedback, and continuously improves supply chain management. Modern Dairy considers not only price, quantity, time and other factors when signing contracts with local suppliers, but also quality, environmental protection and social responsibility factors, requiring suppliers to comply with Modern Dairy’s relevant standards, and ensuring the quality, safety, nutritional components, historical records, overall performance and other aspects of the qualifications of the feed, equipment, services and other materials provided. Modern Dairy also regularly conducts on-site inspections and audits of suppliers, checking their production facilities, management processes, quality control, environmental protection, social responsibility, and other aspects, and evaluating their comprehensive capabilities and levels. At the same time, Modern Dairy also regularly communicates and provides feedback with suppliers, understands their needs and suggestions, solves their problems and difficulties, and enhances their cooperation willingness and trust.

5. Community Philanthropy

Modern Dairy maintains good communication and interaction with local communities, participates in community philanthropic programs, supports the development of education, health, culture, and other fields, and enhances community cohesion and trust. Modern Dairy believes that as a socially responsible enterprise, it not only provides high-quality products for consumers, but also contributes to society. Therefore, Modern Dairy actively establishes good relations with local communities, understands their needs and expectations, and regularly organizes or participates in various community public welfare activities, such as milk, equipment, funds and other donations to local schools, governments, and other institutions, organizes or sponsors local cultural, sports, entertainment, and other activities, and helps local vulnerable groups and difficult families. At the same time, it promotes the development of education, and helps poor students enjoy equal education resources. Through these activities, Modern Dairy can not only improve the local conditions of education, health, culture and other aspects, but also enhance the local residents’ sense of identity and trust in Modern Dairy.

6. Community Development

Modern Dairy focuses on the national key strategic needs, fully plays the leading role of the national key leading enterprise of agricultural industrialization, and actively promotes the effective connection of consolidating and expanding the achievements of poverty alleviation with rural revitalization. It insists on making physical donations to the poor villages and counties around the farm and broadens the employment channels for the poor households. At the same time, it actively assists the government in building fitness squares, cleaning rivers, and paving rural roads, contributing to the poverty alleviation efforts in the region. Modern Dairy implements the “enterprise + base + farmer” feed industry operation mode, and actively lays out the development of feed planting industry in the surrounding areas.

7. Hiring assistance

The company adopts a localization employment policy, actively absorbs local workforce, and broadens the employment channels for local people. The company not only provides stable jobs and income sources for residents, but also provides them with training and promotion opportunities. The company also cooperates deeply with the surrounding areas and farmers and merchants to help and gives priority to opening some positions to the local poor groups, and fully drives the community employment development.

Modern Dairy practices social responsibility, pays continuous attention to people’s livelihood, and actively assists public welfare. Through the whole industry chain construction of feed production, commercial breeding, dairy cattle breeding, resource recycling, and dairy processing, it continuously improves the participation and benefit of farmers in the upstream industry and promotes rural revitalization with dairy industry revitalization. Through the localization procurement policy, Modern Dairy can not only ensure the quality and safety of raw milk, but also create employment opportunities, increase tax revenue, improve living conditions, and enhance social recognition for the local area, achieving a win-win situation for all parties.

The localization procurement policy is an important part of Modern Dairy’s sustainable development strategy, and a concrete manifestation of the company’s social responsibility. The localization procurement policy not only conforms to the company’s own interests, but also conforms to the interests of local stakeholders. The localization procurement policy is a win-win cooperation model and a common growth development path.