Big Demand for Milk in China

Chuck ZimmermanGeneral

American Dairy American Dairy, Inc. of Bejing reported a whopping 81 percent increase in net income for the first quarter of 2006, according to a press release that came out today after the markets closed in China. Gross profit for the company was up 116 percent. Leng You Bin, Chief Executive Officer and President of American Dairy stated, “Chinese consumers increasingly demand our premium milk products and the first quarter of 2006 was no exception. Our overall sales quantity increased 71%, to 6.3 million kilograms, driven by our leading products such as milk powder with nucleotides. We also invested heavily in our Feihe brand by significantly enhancing our advertising efforts, and our top-line growth speaks to this as well.”