About one million herdsmen households in China will benefit from a 100 million yuan (US$12.5 million) government subsidy this year, according to China's Ministry of Agriculture.

The program, which subsidizes herdsmen to raise more pedigree dairy cows, aims to boost the development of the country's dairy industry.

Small numbers of pedigree dairy cows and relatively low output per cow have hampered the industry's growth, according to a ministry working meeting held Tuesday in Yinchuan, capital of northwest China's Ningxia Hui Autonomous Region.

Herdsmen in 178 counties in 22 provinces, municipalities and autonomous regions will receive 30 yuan (US$3.75) for each European Holstein cow and 20 yuan (US$2.5) for each of several superior domestic dairy cow breeds, the ministry said.

The money will subsidize a total of 3.47 million pedigree dairy cows, it added.

In 2005, the central government allocated more than 10 million yuan (US$1.25 million) to fund the breeding of pedigree dairy cows in northern Inner Mongolia Autonomous Region and the provinces of Heilongjiang, Shanxi and Hebei.

China raised 12.16 million dairy cows in 2005 and churned out 28.65 million tons of dairy products.

(Xinhua News Agency September 13, 2006)