China is trying to get its dairy industry compliant, trying to get out the melamine.  The government made this announcement.

“The crisis has put China’s dairy industry in peril and exposed major problems existing in the quality control and supervision of the industry,” an official with China’s National Development and Reform Commission said in a posting on the agency’s Web site.

The government said that it would issue new laws and standards by next October, and that by 2011, “the goal is to have well-bred cows and a mass-producing dairy industry,” according to Xinhua, the official news agency.

My question right now is how much the government subsidizes and/or owns this industry.  The government plows lots of bucks - er remnimbi - into favored industries.  Apples and steel, for example.  And owns half the economy, or so (who knows how much?). 

Is the mass production China dairy industry largely a government construct?  I would guess the answer is yes.

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