China Mengniu Dairy Co Ltd, the largest dairy products distributor in the country, hopes to source 100 percent of its raw milk supply from large-scale farms, up from the 85 percent currently, as part of its efforts to ensure product quality.

The company also plans to spend around 4 billion yuan ($631 million) on building wholly owned large ranches in China to meet part of its raw milk supply requirements.

Bai Ying, executive director at Mengniu, in announcing the company's interim results at a press conference in Hong Kong on Tuesday, said large-scale ranches were already under construction in Northeast China, North China and Northwest China.