(Yicai) April 10 -- To help China’s campaign to boost the nation’s birth rate, two dairy producers have launched subsidy programs to encourage couples to become new parents, with the move also expected to boost sales of baby milk powder.

Yili Industrial Group announced a CNY1.6 billion (USD218 million) maternity subsidy plan today, which will offer CNY1,600 (USD220) to each eligible household. The Hohhot-based firm will also provide health and counseling services during pregnancy and the first three years of a child’s life. It said the program will begin this month.

China Feihe, a dairy giant headquartered on Qiqihar, said on March 26 that it would launch a nationwide birth subsidy program worth CNY1.2 billion from early this April, offering CNY1,500 per eligible household. Their scheme includes coupons for expectant mothers and will also provide infant formula milk powder.

China’s birth rate inched higher last year, after declining for seven straight years, buoyed by a raft of childbirth-friendly policies. The birth rate reached 6.77 per 1,000 people in 2024, reflecting a rise of 0.38 per 1,000 from 2023.

Since last year, the authorities have repeatedly introduced policies to boost childbirth, and it is natural for businesses to help in building a birth-friendly society, Song Liang, an independent dairy analyst, told Yicai. It would be helpful if more companies were to launch subsidy programs, Song added.

China's milk powder market has been gradually picking up in the past year, helped by the rebound in the number of new borns. The sector’s price wars have eased, with dairies focusing more on technology and developing new products. The annual earnings reports of major listed milk powder suppliers and mother-and-infant companies have also pointed to a recovery in the sector.

Industry insiders said that the introduction of birth subsidies by leading firms is related to social welfare factors, but it is also equivalent to increasing investment, and will help to boost the market.

Editor: Tom Litting