Chinese government has gathered in January 2017 to reveal the newest issue of
the Development Plan for the Milk Industry in 2016-2020. The plan focuses on to
strengthen the domestic infant formula manufacturers as well as improve the
standards, laws and regulations in the dairy market.
meeting of China’s Ministry of Agricultural took place on January 9 to reveal
the newest points and the focus of the Development Plan for the Milk Industry
in 2016-2020. The meeting was joined furthermore by China’s Development and
Reform Commission, the Ministry of Industry and Information, the Ministry of
Commerce, and also by the Food and Drug Administration, according to CCM.
new points of the latest issue lay their focus on the domestic competitiveness
in the infant formula business, improved standards, laws, and regulations for
the dairy market as well as the promotion of dairy farming in China.
The three main points
to the plan, China seeks to have at least three domestic infant formula
companies with a sales volume exceeding USD719.4 million till 2020. The market
should be highly concentrated with at least 80% of the domestic infant formula
sales is achieved by the top ten of China’s manufacturers.
measurements for these goals include stricter regulations and standards for the
infant formula market in China. Backing this up, the supervision is going to be
strengthened and tests of infant formula products, as well as checks on milk
producers and transport, will be carried out more frequently. Also, the government
is promoting mergers and acquisitions between Chinese manufacturers to build up
their competitiveness and research and development in infant formulae will be
supported, to create more brand visibility for Chinese producers.
to the fact, that most of the regulations for China’s dairy products are from
the year 2010, a huge focus is laid on the changes in this area. The new
regulations will include stricter requirements for dairy farms, the processing
of dairy, the technological standards, and environmental control as well as
quality and safety of the products. Also, the standards for raw milk are going
to be raised, having an effect on sanitary conditions. This will be supported
by a milk grading system for quality improvement, according to CCM.
goals for the dairy farming are described in the plan as following: 41 million
tonnes of milk and 35.5 million tonnes of other dairy products should be
produced by the year 2020 in China. The milk output per cow will increase by
1.5 tonnes up to 7 tonnes a year till 2020 and the share of large dairy farms
are going to be raised up to 70% of all cows in China.
achieve the goals the plan states to rebuild and expand several farms,
improving the construction of their milking sheds, manure treatment equipment,
and the feed production areas. 300 demonstration farms are going to be built to
ensure the right acknowledgement.
year 2016 was marked by decreasing profits and partly losses for China’s dairy
manufacturers. The falling profits were the results of huge imports of dairy
products, which put pressure on the prices.
of the manufacturers were seeking for new market possibilities in up markets.
Goat milk and organic products have been the most favourable products to
upgrade in infant formula. It is expected, that the sales of infant formula
based on goat milk will double by the year 2020.
manufacturers choose to diversify their business in other markets. For example
going from infant formula to health care products, keeping the same marketing
strategy and retailers to get into new markets.
China’s government strengthen the competition of domestic manufacturers to gain
market share, it is to be seen how the further development trend of China’s
dairy manufacturers is going to head on.
is the leading market intelligence provider for China’s agriculture, chemicals,
food & ingredients and life science markets.
you want to find out more about the dairy Market in China? Join our
professional online platform today and
get insights in Reports, Newsletter, And Market Data at one place. For more
trade information on dairy visit our experts in trade
analysis to get your insights today.