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The Chinese Dairy Industry Has Become More Market-Oriented, Which Is Greatly Influenced By the Trends of The International Dairy Market

Posted on: Wednesday, 21 May 2008, 12:00 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c92487) has announced the addition of "China Dairy Market Review & Outlook 2007-2008" Proposal to their offering.

In 2007, the world dairy market changed a lot with energy prices hitting a new level, such as petroleum, and a strong demand for biological energy. Quantities of corn are changed to ethanol in major dairy producing countries, resulting in strained supply and rising price. Consequently, the surging corn price as the main feed stuff for cows, caused breeding cow cost growth on a large margin and rising raw milk prices.

The dairy production and export subsidy abolishment in EU seriously influenced the production of raw milk and dairy products among EU members. A durative drought in Australia caused the decline of raw milk and dairy products and an excessive sloppy weather also influenced dairy production in New Zealand. Other governments, i.e. India, Argentina and Brazil, carried out export restriction policies to protect the national economy. In addition, producing enterprises in the US and EU prefer the combination of cheese and whey to milk powder and butter, directly influencing the production of milk powder and butter.

Internationally, supply for milk powder, especially SMP, whey powder declined with price growth. Domestically, under the influence of international market, export price of whey powder and milk powder as raw material increased by a large margin, resulting in increasing demand for domestic dairy material. In addition, in the advantage of price, international market pay great attention on Chinese milk power, causing a dramatic export growth. Recently, due to the purchasing price exceeding the breeding cost growth, benefit declined on year-on-year basis, farmers lost above 40% in the first half of 2007.

In the second half of 2007, raw milk and dairy product surged on a large scale, resulting in a great pressure on dairy enterprises, profit hitting the lowest level among dairy processing enterprises. Dairy industry in China is witnessing a formidable change and a dramatic conformity. Considering the current situation, the central government put forward a new legislation Proposals on Promoting a Durative and Healthy Development in China Dairy Industry, which will bring significant influence to the future dairy industry in China.

This report analyzes dairy production, consumption, market price, basic situation of import and export, market competition, relevant hot topics, policy direction and impact, development of main dairy processing and packaging enterprises in China and the development of the international dairy industry in 2007, there is also a forecast for the development trend of the Chinese dairy industry in 2008.

This report is a joint product from experts from the Dairy Department and Beijing Orient Agribusiness Consultants Ltd. These senior dairy analysts also provide advice for relevant departments and associations, and have relationships with major dairy enterprises and relevant industry enterprises, who provide information and data for this report. This is a rare report which shall be of great value for dairy investment companies, producers, material suppliers, equipment suppliers and research institutes both at home and abroad to understand the development trend of the dairy industry, to make decisions on the positioning of the enterprise and to formulate development strategies.

Contents:

1 Status of Dairy Industry in China, 2007

2 Policy Environment of Dairy Industry in China, 2007

3 Analysis of Production of Dairy Products and Raw Milk in China, 2007

4 Imports and Exports of Dairy Products in China, 2007

5 Dairy Consumption in China, 2007

6 Market Competitions in China Dairy Industry, 2007

7 Analysis of Main Dairy Producers in China, 2007

8 Packaging Suppliers for Dairy Products in China, 2007

9 Analysis of Dairy Industry Development in China, 2007

10 Development of International Dairy Industry, 2007

11 Outlook of Dairy Industrial Development of China, 2007

Annex:

Tables

Figures

For more information visit http://www.researchandmarkets.com/reports/c92487


Source: Business Wire

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