China Mengniu Dairy Company Limited : “University of Ranchers” to promote “modern pasture” upgrade

Company Profile
China Mengniu Dairy Company Limited (Mengniu for short) is a leading enterprise in China’s agriculture industrialization and dairy industry. The company has already established a large-scale Dairy industry chain from construction of milk base, the production, sales to the R&D of dairy products. Above 96% of its milk source comes from scaled and intensive production, which leads the whole industry.
Challenge
The pasture facilities have reached an advanced level in China while professionals, funds and technology are still lacked. Besides, the low level of lean management and high cost of pasture operation, to certain degree, impedes the transformation and upgrading of the industry, and further hinders the sustainable development of dairy enterprises.
For this reason, improving the sense of responsibility of ranchers and their professional levels in a sound and effective manner to guarantee supplying the products with better quality and promote the overall upgrading of service level in the whole industry become the key for the sustainable development of dairy enterprises.
Solution
From the source of industrial chain, Mengniu, uniting the top partners in the industry and global experts, initiated “University of Ranchers”. In March, 2013，they established the first organization in China to train ranchers. The organization aims at building a global creativity platform for a sustainable environment of dairy industry. By holding professional training and technological guidance, Mengniu is committed to improve its social responsibility and scientific level with six aspects, namely , abiding by the laws, respecting staff, innovating technology, making a green ecology, treating  animals kindly, and realizing win-win cooperation.
Formulating social responsibility regulations to express the concept of responsibility
By referring to international experience of sustainable management and combining China’s traditional commercial culture based on integrity and altruism, Mengniu drew up a regulation of social responsibility. Based upon the three hierarchy theory of responsibility (which divided the social responsibilities into three categories including obligatory responsibility, expected responsibility and discretionary responsibility), the regulation ranges from ranchers individuals to the development of the industry, providing a common rules for ranchers to perform responsibility. Ranchers can voluntarily sign the letter of commitment. Meanwhile, Mengniu has also formulated implement measures specific to every single provision to make sure the implement of the regulations.
Professional teaching improved ranchers’ expertise
Mengniu “University of Ranchers”, united top partners in the industry and bridged platforms together with China Agriculture University, Holstein Farmer, and Sino-Danish technology center. By providing training courses and establishing national teaching practice base, Mengniu help ranchers raise cattle in a more scientific manner, which improved the sustainable operation of pastures.
Resource integration sets up platform for stakeholders
As the leading enterprise of dairy industry, Mengniu “University of Ranchers” aims at realizing the sustainable development of the industry. By taking advantage of its own strength, Mengniu integrated industrial resources ,provided for source ranches the complete resource service platform, multi-channel financial service and customized technological guidance and training in a new management way. This cross-industry cooperation promoted the operation capability of the pastures and the sustainable development of pasture as well as improved its product competitiveness.
Achievements
Mengniu has set up a platform for ranchers to learn, exchange and practice, which effectively improved the expertise of the ranchers. Mengniu has kept providing the latest technological service for the partner pastures and helped them realized three industrial upgrading including the mechanization of milk collecting, industrialization and modernization of pasture breeding. High quality resource of pastures has shaped the great core competitiveness for Mengniu and the operation efficiency was greatly improved. Meanwhile, by intensifying the management of milk supply chain, the quality of their products is further guaranteed.
Prospect
In 2015, Mengniu will continue carry forward their “University of Ranchers”, and launch the “Sustainable ecology circle of milk source of Mengniu 2020” Project. By intensifying cooperation with China Agriculture University and Holstein Farmer, Mengniu will enhance the training of the sense of sustainable development, ability and management for suppliers and finally build a sustainable ecological circle. The project will push Mengniu to have a gorgeous transformation and realize its industrial integration.