According to Han Changfu, vice-minister of agriculture, the rate of increase of the per capita consumption of dairy products in China has exceeded ten percent annually for the past three years.

"The average resident is consuming more dairy products as the standard of living rises," Han said.

He said, despite the surge in dairy product consumption, China's dairy productivity and total consumption volume are "still comparatively low".

According to official figures, the annual per capita consumption of dairy products in China is seven kilograms, while the world average is 100 kilograms.

The dairy production value in developed countries averages 20 percent of the total agricultural production value, compared to only seven percent in China.

"There is huge potential for China to develop its milk industry, but it requires technological support", Han said.

Han made the remarks while attending the inaugural ceremony for "China's special key scientific and technological projects," into which 405 million yuan (US$52 million) will be poured by the end of 2005.

Li Xueyong, Chinese vice-minister of science and technology, said at the ceremony that the money will be allocated to six technological key studies and eight technology demonstration projects related to the modern dairy industry.

Eight milk-producing giants from seven provinces and municipalities have enrolled themselves in the projects and signed an agreement of technological cooperation with China's top agricultural research bodies.

(Xinhua News Agency October 18, 2002)