China Modern Dairy Holdings Ltd., the nation’s largest raw-milk producer, will consider paying its first dividend next year as it expands dairy output and boosts profit margins, its deputy chairman said.
Saputo Inc.’s sweetened bid for an Australian cheesemaker threatens to erode any cost savings from the takeover, making Canada’s biggest milk processor the third- worst performer among global rivals this year.
Libertarians and others saw evidence of a metastasizing “nanny state” in 2006 when Mayor Michael Bloomberg banned artificial trans fats in New York City. A similar outcry is likely to follow last week’s announcement that the Food and Drug Administration has taken the first steps toward eliminating partially hydrogenated oils from the American diet.
Warrnambool Cheese & Butter Factory Co. said Murray Goulburn Co-operative Co.’s takeover bid needs anti-trust approval and carries a “significant” risk of failure as it recommended a rival offer from Saputo Inc.
Chinese President Xi Jinping’s crackdown on booze-filled bureaucrats and support for the tainted dairy industry have led milk producers to supplant liquor makers as the nation’s top-performing beverage stocks.
China will encourage mergers in the dairy industry to create a few large companies that can produce high-quality products, the Ministry of Industry and Information Technology said in a statement on its Web site today.