LANZHOU - Construction on the world's biggest yak dairy production base began on Friday in Northwest China's Gansu province.

Built with a total investment of 310 million yuan ($40 million), the base is expected to produce 120,000 tons of yak milk every year, said Zhang Xianjun, general manager of the Shoton Yak Dairy Company, which is undertaking the project.

The base is situated in Xiahe, a county with rich natural grasslands in the Tibetan autonomous prefecture of Gannan, Zhang said, adding that it will be the largest of its kind after going into operation in July 2013.

The project is expected to bring 1.8 billion yuan in annual revenues for the company and abundant job opportunities for local Tibetan herdsmen, Zhang said.

The yak, a long-haired bovine, mainly inhabits the Qinghai-Tibetan Plateau. The species has been raised as livestock by many Tibetan families for centuries.

As an essential food for Tibetans, yak milk is more nutritious than regular milk, boasting greater amounts of amino acids, calcium and vitamin A.