It begins with Black Face, White Flower and Second Flower – and hundreds of millions of cows like them. Confronted with shortages of raw materials, long supply chains and growing concerns over food safety, milk producers in China are rolling up their sleeves and getting down to the farm.
They are just some among many companies taking more direct control of supply chains across the globe. The aim is to ensure supply and quality, but also to remove some of the volatility from pricing. Hence PepsiCo’s decision to grow potatoes in China for its crisp brands and SABMiller’s farming of barley in Africa for its beer.
As a fresh foodstuff with a short shelf life, however, milk presents companies with some of the biggest challenges. That was highlighted in the melamine scandal of 2008, when unscrupulous farmers and traders in China spiked milk to boost the protein content, leaving at least six babies dead and another 300,000 sick.