State-owned South Dairy sets industry benchmark

Shanhua 1953 Pure Milk, produced by State-owned Guizhou South Dairy Co, has been recognized as one of the premium eco-friendly food products under the prestigious "Guizhou Series" brand.

Guizhou South Dairy Co in Guiyang, capital of Southwest China's Guizhou province. [Photo/WeChat account of Guiyang State-owned Assets Supervision and Administration Commission]

At the company's Shiguan Dairy Plant in Qingzhen, automated production lines swiftly fill and package dairy products. Screens display real-time GPS tracking of cold chain logistics and dynamic visualizations of pasteurization parameters, and a smart control system maintains the temperature between -0.5 C and 0.5 C.

"We operate seven self-owned farms, which supply 70 percent of our raw milk," said Liu Lihua, South Dairy's technical director. "While national standards require protein content in pure milk to exceed 2.8 grams per 100 milliliters, our standard is 3.2 g or higher before we even consider purchasing," Liu added that other indicators, such as somatic cell count and colony-forming units, are strictly controlled to exceed national requirements.

South Dairy ranked 352nd among China's Top 500 Agricultural Enterprises in 2024 and holds the 11th position among the Top 20 Dairy Agricultural Enterprises.

The low-temperature PET bottle filling machine production line of South Dairy. [Photo/WeChat account of Guiyang State-owned Assets Supervision and Administration Commission]

According to Huang Qingman, deputy director of marketing, the company has invested nearly 65 million yuan ($8.9 million) to introduce advanced equipment and upgrade its production lines with intelligent technologies, ensuring steady improvements in product quality.

South Dairy's commitment extends beyond meticulous production controls. "We have 128 refrigerated delivery vehicles covering all 88 districts and counties across Guizhou," Huang explained. "Each vehicle is equipped with GPS temperature sensors, and we ensure that products reach consumers in the province in less than 10 hours after leaving the factory." Thanks to its robust cold chain network, Shanhua Milk has expanded its reach to neighboring provinces and autonomous regions, including Hunan, Guangdong, and Guangxi.

"In recent years, we've also launched a series of creative products like ice creams shaped after iconic landmarks such as Jiaxiu Tower, Qingyan Ancient Town, and Qianling Mountain, as well as a series of sea buckthorn yogurt products highlighting Guizhou's local flavors. They quickly captured market attention upon release," Huang added.

In addition to strengthening its sales network, South Dairy expanded its online presence, setting up stores on major e-commerce platforms like Douyin, Taobao, and JD in 2024, and achieved nearly 80 million yuan in online sales revenue.