Modern Dairy Waste Management Practices

1. Waste Audits

Modern Dairy has established a waste audit program. Based on their respective operational circumstances, our farms regularly identify and assess waste generated from their operations. The audits cover the sources, types and quantities of waste, storage methods, transfer records, treatment methods and final destinations. Through reviews of waste management ledgers, on-site inspections and waste sorting inspections, we identify waste streams with significant generation and opportunities for improving waste management performance.

To address issues and improvement opportunities identified through the audits, each farm develops and implements corresponding improvement measures, such as reducing waste generation at source, optimizing waste sorting and storage, increasing reuse and recycling rates, and standardizing waste transfer and disposal procedures. The Company tracks the implementation of these improvement measures to continuously enhance its waste management performance.

2. Waste Reduction Training

Modern Dairy regularly provides waste management and reduction training to employees in relevant positions. The training covers waste reduction at source, waste sorting and collection, compliant storage and transfer, reuse, recycling and resource recovery. It helps employees understand the importance of reducing waste generation and the amount of waste sent to landfill, while enabling them to understand the management requirements for different types of waste.

3. Waste Diversion from Landfill Certification

Modern Dairy actively promotes waste reduction, recycling and resource recovery, and encourages eligible farms to improve their waste management practices and obtain third-party certification in accordance with applicable waste diversion from landfill assessment standards.

On 14 August 2026, Modern Dairy (Baoji) Co., Ltd. successfully passed the Zero Waste to Landfill Management System Assessment conducted by the independent third-party organization TÜV Rheinland and obtained the highest rating under the assessment system—a three-star certification. It became the first large-scale dairy farm in China’s dairy cattle farming industry to receive this highest-level certification. By establishing a closed-loop management system covering waste sorting, reduction at source, reuse, recycling and resource recovery, the Baoji Farm systematically identifies the sources and final destinations of waste and continuously increases the proportion of waste diverted from landfill.

Three-Star Zero Waste to Landfill Management System Certificate of Modern Dairy (Baoji) Co., Ltd.