Some domestic up-market dairy brands are set to receive a government subsidy to promote merging and acquisition within the industry, a senior official of the Ministry of Industry and Information Technology said on Tuesday.

Gao Fu, an assistant inspector of MIIT's consumer goods department, told National Business Daily the government will promote dairy sector consolidation focusing on some high-end powder brands, but declined to give details on the brand names.

But earlier reports revealed that five Chinese dairy companies - Yili Industrial Group Co Ltd, China Mengniu Dairy Co Ltd, Feihe International Inc, Heilongjiang Wondersun Dairy Co Ltd and Tibet Treasure of Plateau Yak Milk Co Ltd - are likely to become the first batch to benefit from the government's 30 billion yuan subsidy package to help them compete with international rivals.