China is taking steps to build a Sino-Russia joint-venture livestock farm in Mudanjiang city, northeastern China's Heilongjiang province, according to a Nandu.com report on Wednesday.

The ranch is planned to invest 1billion yuan or 161 million US dollars and will raise 100,000 dairy cattle. Experts believe it will become the world's largest ranch after its completion. And all the milk and milk products will sell in Russia, said the report. 

The news aroused concern from the European Union (EU).

The annual milk production is expected to reach 8 billion liters, said the EU Agriculture Group. 

Russia has just recently extended an embargo against EU milk to the year of 2016. 

Since Russia implemented full embargo against products varying from fruits, vegetable, meats, fish, milk to milk products against the EU, the US, Norwegian and Canada, its needs of Chinese agriculture products increased sharply. Official data shows in the first half of this year, a total 33,900 tons of fruits and vegetables were exported from Heilongjiang to Russia via Heihe, the busiest port along China-Russia border, worth some 17. 23 million US dollars and seeing a 40 percent increase compared to the same period of 2014.