Milkana (Tianjin) Foods Co., Ltd. (Milkana), a JV between Bongrain (France) and Schreiber Foods, Inc.(USA), launched its 2nd cheese factory in Tianjin on October 29th, 2008. This plant is designed to further satisfy the growing cheese demand in China and further afield across Asia. At present, China's cheese imports have been rising by around 15% annually, indicating the strong potential of this market in the future. Milkana began to build the new plant in 2006 and finished in May this year. With total investment of €9 million, the plant has a capacity of 3,300 t/yr and is expected to achieve a turnover of USD19.03 million. Milkana will mainly produce processed cheese, mozzarella, cheese powder and children's cheese products in the new factory. The bulk of the production will be supplied to food processors. Only a few products, like Milkana Kiddy cheese, a cheese for 4 year-old children, will be sold to local supermarket chains. Milkana cheese is one of the most popular cheeses in China at present. The new production will be based on raw materials such as cheese and milk powder imported from the US, Australia and New Zealand. The new plant will greatly help Bongrain expand its business in Asia. The company mainly targets three countries in Asia: China, South Korea and Japan. It indicates that it expects events such as the World Expo in Shanghai in 2010 to provide excellent opportunities to build cheese business and beyond across Asia. At present, demand for cheese in China is about 20kt per year, with cheese import increasing rapidly. Currently import demand is still less than half that in South Korea and insignificant compared to Japan, the largest import market in the world for cheese. However the potential for increased demand in China, especially amongst the increasing urbanized population, is enormous. For example, extrapolating OECD's forecast for growth in consumption of cheese in China to 2020 provides a per capita consumption of 0.3kg. Applying this to the whole of China's population implies total cheese consumption of 427kt! Even if applied only to the urban population, this means total cheese demand could reach 234kt. Having seen South Korea going from a market in 1990 where cheese was almost unavailable to one of the world's leading cheese importers in a space of some 15 years, such growth in China appears likely rather than merely plausible.

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