Modern Dairy Health and Nutrition Policy

1. Purpose

Modern Dairy’s Health and Nutrition Policy covers the following core aspects, aiming to ensure that our products not only meet market demand but also actively contribute to national health:

1.1 Enhancing Product Health and Nutritional Value

Modern Dairy consistently prioritizes enhancing the health and nutritional value of raw milk as a core strategy. We achieve this goal through the following methods:

Optimizing Dairy Cow Farming Management: Employing advanced farm management techniques, scientific feed formulations, and strict animal welfare standards to ensure the health of dairy cows, thereby producing high-quality, nutrient-rich raw milk.
Product Innovation and Upgrading: In addition to continuously providing high-quality fresh milk, we actively explore and develop products with higher added value and specific nutritional characteristics. For example, we are advancing the production of A2 beta-casein milk to meet the needs of specific consumer groups; at the same time, we are also committed to organic milk production, which is certified as an organic product through the “Organic Product Management System (GB/T 19630-2019)”.
Strict Quality Control: Strictly monitoring key indicators of raw milk such as fat, bacteria, and protein content, ensuring that all indicators are significantly superior to the China’s “GB19301-2010 National Food Safety Standard for Raw Milk” and “National Food Safety Standard for Raw Milk (GB 19301-2010) No. 1 Amendment” standards, providing high-quality raw materials for downstream dairy processing enterprises, and ultimately ensuring consumers receive healthier and more nutritious dairy products.

1.2 Improving Product Affordability and Accessibility

Modern Dairy deeply understands the importance of affordability and accessibility in ensuring national nutritional health. We strive to achieve this goal through the following approaches:

Cost Reduction and Efficiency Improvement, Enhancing Production Efficiency: With the promotion of large-scale, intensive farming models and the application of advanced technologies, we continuously improve single-cow yield, optimize production processes, and effectively reduce the production cost per kilogram of raw milk. Through continuous cost reduction and efficiency improvement, we provide downstream dairy enterprises with more competitive raw material prices, which helps the final products benefit a wide range of consumers at more reasonable prices, enhancing the affordability of nutritious dairy products.
Promoting Industrial Synergy, Expanding Product Application Scenarios: As a professional raw milk supplier, we actively collaborate deeply with downstream dairy enterprises and various food processing enterprises, providing customized raw milk products or primary processed products according to their diversified needs. This close industrial synergy greatly expands the application scenarios of raw milk, extending from liquid milk (UHT milk, low-temperature pasteurized milk) to other dairy products such as milk powder, cheese, yogurt, and even broader food sectors like baking and catering. By continuously enriching the application forms and product categories of raw milk, we can not only meet consumers’ increasingly diverse nutritional needs but also, through economies of scale and product innovation, ensure that dairy products enter the market in richer forms and at more reasonable prices, significantly enhancing the overall market accessibility of dairy products.

1.3 Product Portion Sizes and Contextual Factors to Prevent Overconsumption

As a raw milk producer, Modern Dairy’s primary business is to supply high-quality raw milk to dairy processing enterprises, not to directly sell small-portion packaged products to end consumers. Therefore, we are not involved in setting portion sizes or marketing contexts for end-consumer products.

We maintain close cooperation with downstream dairy processing enterprises, supplying raw milk according to their production needs. Through effective communication mechanisms, we understand the demand plans of downstream enterprises, ensuring supply on demand and avoiding resource waste.

1.4 Marketing Communications Accurately Represent the Characteristics of the Promoted Products

Modern Dairy’s marketing communications primarily target industry clients and investors, as well as enhancing corporate image through brand promotion. We commit to:

Truthful and Accurate Promotion: All promotional content regarding Modern Dairy’s raw milk quality, nutritional components, production process, and corporate strength is based on objective facts and scientific data, ensuring truthfulness and accuracy, never exaggerating or misleading.
Transparent Information Disclosure: We transparently disclose our production standards, quality control systems, and key product indicators through official websites, industry reports, news releases, and other channels, ensuring the traceability and verifiability of information.

1.5 All Health and Nutrition Information and Claims are Scientifically Substantiated

Modern Dairy maintains a rigorous scientific attitude towards all health and nutrition-related information and claims.

The raw milk quality indicators we promote, such as somatic cell count, fat, bacteria, and protein content, are all based on strict laboratory testing data. These data are significantly superior to national standards, and corresponding test reports can be retained as support.

1.6 Disclosure of Supplementary Nutrition Information on All Products in All Markets

As a raw milk supplier, Modern Dairy’s product is raw milk, primarily supplied to downstream dairy processing enterprises. Therefore, we do not directly disclose supplementary nutrition information on end-product packaging.

Providing Detailed Raw Milk Data: We provide all downstream customers with detailed raw milk quality test reports and nutritional component data, ensuring they can accurately understand the nutritional characteristics of our raw milk, so that they can use this data for nutritional labeling and disclosure of supplementary nutrition information when processing into final products.
Supporting Downstream Compliance: We actively support downstream customers in complying with relevant regulations such as the Codex Alimentarius Commission (CAC) “Guidelines on Nutrition Labelling” (CAC/GL 2-1985), ensuring that final products can provide standardized, transparent nutritional information to consumers.

1.7 Application of Nutrition Claims for All Products in All Markets

Modern Dairy commits that all raw milk produced by Modern Dairy will have its nutrition claims accurately and transparently stated according to the quality standards achieved. Specifically, all raw milk sold for fluid milk use strictly complies with the China’s “GB19301-2010 National Food Safety Standard for Raw Milk” and “National Food Safety Standard for Raw Milk (GB 19301-2010) No. 1 Amendment” standards. Its quality and nutritional components are strictly managed and tested, ensuring consistent quality across all markets and product applications.

2. Health and Nutrition Programs

2.1 Use of Nutrition Analysis Systems

We have a mature feed nutrition analysis system and formulation management system, which optimize feed formulations through big data analysis to ensure dairy cow health and high-quality raw milk. This includes evaluating feed ingredients, as well as refined feeding and the application of advanced TMR (Total Mixed Ration) technology.

Optimal Formulation Identification: We install 3D visual body condition scoring devices at the milking parlor or in the alleys of the farm to monitor dairy cow feeding in real time and obtain body condition scores using the “Tiger” model. Nutritionists adjust feed types and allocation based on the cow’s breed, age, weight, and health status to ensure optimal nutritional balance for all types of cattle.
Scientific Formulation Customization: We use advanced farm nutrition modeling software (such as AMTS) to chemically analyze feed ingredients, diagnose dietary energy-nitrogen balance, and scientifically customize balanced nutritional formulations that are beneficial to animal health, thereby reducing nitrogen and phosphorus excretion from cattle.
Professional Nutrition Management: Each farm is equipped with professional dairy cow nutritionists who, based on the different stages, regions, breeds, and physiological conditions of the cattle, reasonably combine concentrates and roughages to form delicious, healthy, and nutritionally balanced Total Mixed Rations (TMR), meeting the nutritional needs of dairy cows at various stages.

2.2 Health and Nutrition Standards

Our raw milk quality standards not only comply with national standards but also refer to international advanced standards and industry best practices, and we set internal control indicators higher than national standards to meet customer needs. Modern Dairy continuously carries out quality management system certification work, covering multiple important certifications, including ISO 9001 Quality Management System Certification, “Organic Product Management System (GB/T 19630-2019)”, China GAP Good Agricultural Practices Certification, National Premium Milk Project Certification, and Farm Animal Welfare Product Certification.

2.3 Targeted Products

We indirectly meet the needs of key populations by producing raw milk with specific nutritional characteristics. For example, A2 beta-casein milk targets consumers with lactose intolerance or digestive discomfort, while organic milk caters to consumers seeking natural, additive-free products.

2.4 Research and Development Investment

2.4.1 For Nutritional Enhancement

Scientific Research Platform Construction: Modern Dairy has established a professional scientific research system combining independent R&D with external cooperation, comprising two major platforms: Jingwa Dairy Cow Nutrition Research Institute and Nanjing Agricultural University Modern Dairy Dairy Cow Industry Research Institute. The company focuses on milk source nutrition, health management, and sustainable development. In animal health, it has successfully applied “Changshan Ketone” traditional Chinese medicine additives to prevent calf diseases and is committed to innovating technologies such as intelligent feeding, health monitoring, low-soybean meal diets, and amino acid balance.
Dairy Cow Genomic Breeding Innovation: To enhance the nutritional quality of raw milk from the source, we actively promote the research and application of genomic breeding technology. By establishing a database containing a large number of dairy cow phenotypes and genotypes, and utilizing genetic monitoring methods (genetic information, gene sequences, genetic markers, etc.), we can accurately predict the genetic potential of dairy cows at an early age. This greatly improves selection efficiency, shortens breeding cycles, and achieves precise and efficient dairy cow breeding, thereby laying the foundation for producing healthier, more nutritious raw milk.
Independent Bull Breeding System Construction: Guided by genomic breeding, we have made significant breakthroughs in dairy cow breeding, successfully establishing an independent bull breeding system. This not only solves the critical problem of the company’s long-term reliance on imported frozen semen and insufficient independent germplasm, but also, through the combination of gene screening technology, makes the transmission of excellent genetic traits of high-quality bulls more targeted, ensuring the stable inheritance of superior nutritional traits. At the same time, we have also broken through high-survival rate frozen embryo technology, significantly improving the survival rate of in vitro frozen embryos and the success rate of conception after transplantation, providing a solid guarantee for continuously optimizing the overall nutritional performance of the herd.

2.4.2 For Improving the Affordability and Accessibility of Healthy Products

We continuously improve dairy cow single-cow yield and optimize raw milk production processes to effectively reduce production costs, ensuring that healthy dairy products are more market-competitive and affordable. At the same time, we will actively expand the application scenarios of raw milk, deepen collaborative innovation with downstream partners, and develop more diversified dairy product categories, thereby expanding the market coverage of healthy products and improving their accessibility. We are committed to enabling more people to enjoy safe, nutritious, and healthy dairy products through technological innovation and industrial collaboration, jointly promoting the improvement of public health.

2.5 Reporting

As a listed company, we regularly disclose progress in product quality, safety, and R&D investment in our annual reports or ESG reports to demonstrate our efforts towards health and nutrition goals.

Nutrition Goal	2024 Progress	2025 Progress
Feed Conversion Rate¹ ≥ 1.55	1.59	Ongoing
Annual Yield per Adult Cow ≥ 12.5 tons/year	12.8
Milk Protein ≥ 3.3%	3.37
Milk Fat ≥ 3.7%	3.82
Somatic Cell Count ≤ 250,000 (EU standard)	144,000
Microorganisms ≤ 100,000 (EU standard)	12,900

Note ¹: Feed Conversion Rate (FCR) = (Lactating Cow Yield / Average Dry Matter Intake per Lactating Cow)*100%

2.6 Not Applicable:

Quantifiable targets for fortified foods rich in nutritional fortifiers: Modern Dairy focuses on providing high-quality natural raw milk and does not “fortify” products by adding extra ingredients. Our goal is to produce natural raw milk with high protein content and excellent quality, for example, by breeding A2 gene dairy cows to produce A2 beta-casein milk.
Quantifiable targets for reducing fat, salt, sugar, or additive content: Modern Dairy produces raw milk and is not involved in the formulation adjustment of end-consumer foods. The fat and protein content of raw milk are natural, and we focus more on enhancing its natural nutritional value.
Quantitative packaging design: Modern Dairy primarily sells bulk raw milk to processing enterprises and is not involved in quantitative packaging design for end consumers.

3. Continuous Improvement and Oversight

Modern Dairy will regularly review the implementation of this Health and Nutrition Policy and continuously improve it based on the latest scientific research, industry best practices, and stakeholder feedback. We encourage all employees, partners, and consumers to provide valuable input on the implementation of this policy.