Shanghai Xidi Dairy Co., Ltd. has been a steady operator in China’s dairy sector since the 1980s. Today, the farm manages a herd of over 2,000 cows.
Its Holstein cows achieve an average yield of 11.5 tons per year, with strong milk components averaging 3.8–3.9% fat and 3.3–3.4% protein, metrics consistent with the high end of national averages as reported by the China Dairy Association.
The farm is owned by Mr. Jin, who made the strategic decision to introduce Norwegian Red (NR) genetics into his herd to improve animal health, fertility, and milk quality. Over successive breeding cycles, the operation has integrated nearly 200 crossbred Norwegian Reds, with some animals now reaching the F3 generation.
Mr. Jin’s management, focused on robust genetics and welfare, has resulted in exceptional herd health, dramatically reducing the incidence of major production diseases and minimizing the need for medical interventions.
China’s Dairy Market: Premiumization on the Rise
China’s dairy market is in a phase of rapid transformation, fueled by urbanization and rising disposable incomes. Valued at an estimated USD 74.18 billion in 2025, the market is projected to grow to USD 91.11 billion by 2030, according to industry forecasts from Mordor Intelligence.
A key trend is premiumization: consumers in major metropolitan areas are willing to pay 15–25% more for products with higher protein, organic credentials, and functional benefits. Despite this growth, China's per capita dairy consumption remains around 42 kg annually (FAO, 2022), well below the global average, indicating significant potential for further expansion.
Supplying a Dairy Giant: The Bright Dairy Partnership
Xidi Dairy supplies its high-quality milk to Bright Dairy & Food Co., Ltd., one of China’s leading and oldest dairy enterprises, founded in 1911. Bright Dairy operates well over 10 dairy farms and reported annual operating revenue of approximately RMB 28.2 billion (approximately USD 4.0 billion) in 2022, according to its annual report for that year. (Bright Dairy Annual Report, 2022).
Its extensive portfolio spans fresh milk, yogurt, cheese, and infant formula. To secure premium supply and advanced technology, Bright Dairy has made strategic international investments, including a stake in New Zealand’s Synlait Milk.
Norwegian Red: Genetics Engineered for Modern, Efficient Farms
For Geno, the Norwegian agricultural cooperative that owns and develops the Norwegian Red breed, China represents a continuous and key growth market. Norwegian Red genetics have been present in China for over two decades, promoted for traits essential for large-scale, profitable farming: longevity, high fertility, strong udder health, and adaptability to automated systems like robotic milking. These inherent qualities help lower lifetime production costs, improve sustainability, and align perfectly with China’s strategic shift toward high-quality, efficient dairy production.
A Model for Sustainable Growth
Shanghai Xidi Dairy initially introduced NR genetics on a trial basis, monitoring performance across successive crossbred generations. The results were compelling, showing improved health, resilience, and component quality.
Building on these outcomes, the farm now plans to expand NR usage, strategically combining the high-volume milk yield of Holsteins with the component strength and durability of Norwegian Red genetics. This approach has evolved into a competitive and sustainable production model.
