中国乳制品月报(乳制品中国新闻1804)

This month’s issue highlights some very mixed results amongst companies in various segments of the domestic dairy industry in China– some have performed poorly or are struggling to develop a more balanced product portfolio, but there are also signs of growth and of clear confidence in the market’s future prospects. As ever, market positioning and the business models employed are key determinants of performance, although it is clear that support from the Chinese government in various ways can prove beneficial for some businesses too, as the CITIC link with Ausnutria suggests.

Developing international business is seldom easy, and we see this day to day on our projects for dairy clients. It’s often harder for smaller companies but ultimately good business depends on trustworthy relationships which overcome the challenges – this is why a small company such as France’s ULVV (just 68 milk producers) can successfully export infant and adult formula to markets such as China, Vietnam and Taiwan.

Countries with serious intent to build dairy exports fund generic export marketing in many guises. It’s not perfect but there is no doubt that it has helped SMEs and sometimes also the major players to expand their business in a wide range of export markets around the world. This is an ongoing investment made by many of the leading dairy-exporting countries but much less by the newer ones from Latin America and Eastern Europe – if they are serious about being more than fringe-commodity players, they should be giving this topic serious priority.