23. Employee Benefits Payable

12 Months Ended

Dec. 31, 2012

Pension and Other Postretirement Benefits Disclosure [Text Block]

23. EMPLOYEE BENEFITS PAYABLE

The full-time employees of the Company’s subsidiaries that are incorporated in the PRC are entitled to staff welfare benefits, including medical care, welfare subsidies, unemployment insurance and pension benefits. These companies are required to accrue for these benefits based on certain percentages of the employees’ income in accordance with the relevant regulations, and to make contributions to the state-sponsored pension and medical plans out of the amounts accrued for medical and pension benefits. The total amounts charged to the consolidated statements of income and comprehensive income for such employee benefits related to the Company’s continued operations amounted to approximately $4,755,312, $6,920,945 and $4,990,686 for the years ended December 31, 2012, 2011 and 2010, respectively. Employee benefits related to the Company’s discontinued operations totaled nil, $128,330 and $231,798 for the years ended December 31, 2012, 2011 and 2010, respectively, and are included in income from discontinued operation, net of taxes, in the accompanying consolidated statements of income and comprehensive income. The PRC government is responsible for the medical benefits and ultimate pension liability to these employees.

Effective January 1, 2007, the Company established the Feihe International, Inc. 401(k) Profit Sharing Plan and Trust (the “Plan”). The Plan is a discretionary defined contribution plan and covers substantially all employees who have attained the age of 21, have completed at least six months of service, and have worked a minimum of 1,000 hours in the past Plan or anniversary year.

Under provisions of the Plan, the Company, for any plan year, has contributed an amount equal to 100% of the participant’s contribution or 5% of the participant’s eligible compensation, whichever is less. The Company may, at its own discretion, make additional matching contributions to participants. Company contributions, net of forfeitures, amounted to $14,581, $7,815 and $16,704 for the years ended December 31, 2012, 2011 and 2010, respectively.