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Fancy a splash of milk with that? In China’s case the country does not have nearly enough to offer. Small dairy farms with low production yields are failing to meet demand while distrust of scandal-hit local brands has driven parents as far as the U.K. and Australia in search of foreign-made baby milk. And to top it all off, one of these foreign producers was caught up in its own scare this month. Still, the share prices of China Mengniu, the domestic industry’s biggest dairy processor, and China Modern Dairy, the top supplier, just jumped after Mengniu’s tie-up with Groupe Danone SA, among others, boosted first-half sales. If China’s milk industry can shed the scandals, it is worth investors taking a look.