Chinese Dairies See Sales Drop

摘要

Inner Mongolia Yili Croup (Yili), China's largest dairy producer by sales revenue, says :he tainted milk scandal caused a steep decline in sales revenue in 2008. In a statement, the company said that 2008 results were depressed by sharply declining sales and the high cost of product promotions to restore consumer confidence. The company did not specify its loss but US investment bank Morgan Stanley has said that it could amount to as much as RMB2.3 billion (€255 million). China Mengniu Dairy, the country's largest liquid milk producer, estimated that its 2008 losses could reach RMB900 million (€100m). Shanghai Bright Dairy also said in its 2008 third quarter fiscal report that it expected a huge loss in 2008. The company posted a loss of RMB271 million (€30m) in the third quarter of last year.