China Modern Dairy Holdings Ltd. is an investment holding company. The Company, through its subsidiaries is engaged in production and sales of milk. It is primarily engaged in the production and sale of raw milk, which it sells to its customer for further processing, primarily into high-end dairy products. Its dairy cows live in covered stalls and are fed with mixed feed. As of June 30, 2010, it had approximately 72,000 dairy cows at 11 large-scale dairy farms across China. It operates large-scale industrialized free-stall dairy farms with a capacity of raising up to 10,000 dairy cows per farm. As of June 30, 2010, it operated 11 farms across China with an aggregate gross land area of approximately 38,928,400 square meters. Its milk production process consists of testing, pre-milking sterilization, cleaning, milking, cooling, central collection and delivery. On June 30, 2010, Modern Farming (Group) Co., Ltd. acquired 100% interest in Modern Farm (Chabei) Hengsheng Co., Ltd.