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Shoppers select dairy products in a supermarket in Zhengzhou, Henan Province, according to this May 22 file photo. China announced measures Sunday to support the dairy industry as 30 percent milk cow raisers suffered losses in 2006. [newsphoto]

China announced measures Sunday to support the dairy industry as 30 percent milk cow raisers suffered losses in 2006.

The cost of milk cow raising has increased sharply since 2006. The cost of feed has increased by 30 percent; cost of human labor has doubled; and expenses in quarantine, transport and water and power have also increased to different extents.

However, the price of milk has remained the same as in the previous years. As a result, the profit from raising a milk cow decreased by an average 1,200 yuan (US$160).

The new measures will put all raisers of progenitive cows across the country under the subsidy program that once only covered 181 counties, according to the National Development and Reform Commission.

Under the new measures, the government will provide more financial support, including offering interest subsidies and extending loan payment period, to milk cow raisers.

The government will provide premium subsidies to encourage milk cow raisers to buy insurance, according to the new measures.

Related departments and authorities of the State Council are studying the implementation details of the measures, which will be enforced by the end of 2007.