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The new Chinese dairy will house around 3,000 milking cows, imported from New Zealand.

Through September, dairy cows slaughtered through federally inspected plants were running 79,000 head fewer than last year.

U.S. milk production is expected to continue rising in 2011, but anticipated higher feed prices will likely curb producer income.

USDA is issuing $17 million in economic loss assistance payments to eligible dairy producers.