21. Accrued Expenses

12 Months Ended

Dec. 31, 2012

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

21. ACCRUED EXPENSES

Accrued expenses as of December 31, 2012 and 2011 consisted of the following:

	2012		2011
	US$		US$
Accrued promotion and marketing expenses		12,153,755		5,806,444
Accrued shipping cost		645,512		327,280
Accrued advertising expenses		535,697		33,366
Other accrued expenses		858,261		776,280
		14,193,225		6,943,370

Accrued sales and marketing expenses include advertising, transportation costs and sales department salaries.

Other Payables [Member]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

24. NOTES PAYABLE AND OTHER PAYABLES

Notes payable as of December 31, 2012 were 180-day bank acceptance notes which are used for the settlement of purchase of packaging materials.  All notes will mature within three months as of December 31, 2012.

Other payables as of December 31, 2012 and 2011 consisted of the following:

	2012		2011
	US$		US$
Payable for property, plant and equipment		12,784,034		18,865,860
Other tax payable		12,025,311		9,578,354
Deposits from distributors		2,973,046		2,475,810
Payable to unrelated parties, due on demand		2,470,064		442,600
Payable for land use rights		260,978		137,933
Deposit received from milk collection stations		538,042		544,889
Advances from employees		532,795		1,113,105
Payable to local County Finance Department (i)		—		1,180,954
Others (ii)		7,099,462		5,221,883
		38,683,732		39,561,388

(i)

The Group received funding from the local County Finance Department for construction of the production facilities in the region and working capital usage. Although no repayment terms were attached with the funds, the Group considers them to be unsecured, non-interest bearing loans from the local County Finance Department that are repayable on demand. During 2012, the Company repaid $316,992 to the local County Finance Department. The remaining balance of $863,962 in 2011 represented the payable to local County Finance Department for the land use rights of Langfang Feihe. No such balance remained outstanding as of December 31, 2012 following the sale of land use rights and property, plant and equipment of Langfang Feihe.

(ii)

Other payables mainly include payables to employees, deposits received from logistics companies, advertising cost and other miscellaneous payables.