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Examine the Chinese Dairy Product Industry With This Comprehensive Report With Forecasts Through 2008-2010

Posted on: Thursday, 23 October 2008, 12:00 CDT

Research and Markets (http://www.researchandmarkets.com/research/f02a4c/market_research_re) has announced the addition of the "Market Research Report on Chinese Dairy Product Industry, 2008-2010" report to their offering.

This report analyzes the status quo of China's dairy product industry, including supply & demand and the competition situations. It is a reference of great value for investors to understand the current situations of China's dairy product industry and major players so as to seize investment opportunities and avoid risks.

The dairy product industry has been one of the fastest growing industries, with an annual growth rate of over 20%. By the end of 2007, the cow population reached 12.189 million herds, with 14% growth compared to 2006. The total milk output of 2007 reached 36.334 million tons, up 10% from 2006. The cow milk output stood at 35.252 million tons, ranking 3rd around the world, second only to the US and India.

In 2007, China's dairy product industry sustained rapid growth, with an annual output of 17.87 million tons, up 21.79% from 2006. Fluid milk output reached 14.41 million tons, up 17.83% from 2006. The gross revenue of the dairy product industry stood around 19.5 billion USD, up over 20% from 2006. The sales were around 19 billion USD, up about 25% growth year on year.

Chart China's dairy product outputs from 2003 to 2007

Recent years saw the slowing down of the growth of China's pure milk market, particularly in large and medium-sized cities where the market is on the verge of saturation and the profit margins are narrow, whereas the profit margins of the domestic yogurt market remain much higher than overseas mature markets with a growth rate of over 30%. The growth rate of particular types of yogurt like fruit grain yogurt even reached 40%, which indicates the huge potential of the domestic yogurt market.

In the second half of 2007, due to factors such as the price hike of dry milk on the international market, the short supply of goods and the increase of the domestic food production demand, the production and sales of milk powders witnessed a good trend with the price going up substantially. Especially since August, the price of the whole dry milk and its exports surged drastically. The national dry milk exports of 2007 reached 62 thousand tons, with a growth of 41,400 tons and 201.5% year on year while imports declined by 36,700 tons or 27.2% year on year. In 2007, the domestic dry milk supply decreased by 78,100 tons, which invigorated the once-sluggish production of dry milk. Corporations all stepped up production which sent the dry milk into short supply. In the past few years, the development of China's dairy industry was developing without regulation and scrambling for milk source rampant. The invigoration of the dry milk market exacerbated the chaos of the milk source scramble and triggered the spiraling of milk price. Survey shows that the range of increase in milk prices from January to September in 2007 was between 10% and 30% while the widest range could be between 40% and 50%. In terms of regional differences, the range was wider in the northern areas than in the southern areas, in dry milk production areas than in fluid milk production areas and in rural areas than in urban areas. Since November 2007, milk output in the northern areas declined, bringing the price up to 50--55 cents/kg. (In the corresponding period of 2006 the price is 25--30 cents/kg). At the beginning of 2008, the international dry milk price fell back significantly and China's exports of dry milk dropped month by month.

In the autumn of 2008, the "melamine" scandal gave heavy blow to China's dairy product industry, and consumers began to lose confidence in the safety of domestic dairy products. On one hand, this scandal had a disastrous impact upon the sales of China's dairy products and the impact may even be felt by other food-related industries. On the other hand, it has altered the course of development of China's dairy product industry. Its main influences are as followed:

1. It affects the process of Mergers and acquisitions of China's dairy product industry. While consumers cease to trust the quality of national dairy enterprises, regional dairy enterprises gain the opportunities for development.

2. It provides opportunities for overseas dairy enterprises to enter China's market as imported products with quality assurance become the first choice of many Chinese people. A lot of price-insensitive consumers start to buy imported products or products of foreign-capital enterprises. The brands like Nestle, Mead Johnson and Abbott Labs that have been on China's market for long all promote their marketing campaigns. Besides, President from France and Country Goodness from New Zealand also launch their products into China's market. Particularly, the lucrative baby milk powder market has been a battlefield for multinational dairy enterprises due to the market vacuum.

Key Topics Covered:

Chapter 1 Overviews on China's Dairy Product Industry

1.1 Related Concepts

1.2 The Position of the Dairy Product Industry in the National Economy

Chapter 2 Analysis of the Supplies of China's Dairy Product Industry

2.1 Analysis of Overall Supply Situations

2.2 Analysis of the Tendency of the Supply of China's Dairy Product Industry

Chapter 3 Analysis of the Demands of China's Dairy Product Industry

3.1 Analysis of Overall Demand Situation

3.2 Analysis of the Structure of Demand of China's Dairy Product Industry

3.3 Analysis of the Tendency of Demand of China's Dairy Product Industry

Chapter 4 Analysis of the Competitions of China's Dairy Industry

4.1 Analysis of the Characteristics of the Competition

4.2 Analysis of the Competitive Strategies of China's Dairy Product Industry

4.3 Analysis of the Tendency

Chapter 5 Analysis of Sub-industries of China's Dairy Industry

5.1 Analysis of the Fluid Milk Industry

5.2 Analysis of the Milk Powder Industry

5.3 Analysis of China's Cheese Industry

5.4 Analysis of China's Cold Drink Industry

5.5 Analysis of the School Milk Market

Chapter 6 Analysis of Regional Markets of China's Subdivided Dairy Product Industry

6.1 Overall Analysis of Regional Distribution of China's Dairy Product Industry

6.2 Analysis of the Dairy Product Industry of Inner Mongolia

6.3 Analysis of the Dairy Product Industry of Hebei

6.4 Analysis of the Dairy Product Industry of Heilongjiang

6.5 Analysis of the Dairy Product Industry of Shandong

6.6 Analysis of the Dairy Product Industry of Shanghai

Chapter 7 Analysis of the Major Enterprises of China's Dairy Product Industry

7.1 Mengniu Group of Inner Mongolia

7.2 Yili Group of Inner Mongolia

7.3 Shanghai Bright Dairy Group

7.4 Beijing Sanyuan Dairy Group

7.5. Nestle Shuangcheng Ltd.

7.6 Heilongjiang Wondersun Dairy Co.Ltd.

7.7 Guangdong Yashili Group Co.Ltd.

Chapter 8 Analysis of Mergers and Acquisitions of China's Dairy Product Industry

8.1 The Status Quo of Mergers and Acquisitions

8.2 Case Study of Mergers and Acquisitions

Chapter 9 Analysis of Investment in China's Dairy Product Industry

9.1 Analysis of Investment Risks

9.2 Analysis of the Investment Opportunities

Companies Mentioned:

- Mengniu Group of Inner Mongolia

- Yili Group of Inner Mongolia

- Shanghai Bright Dairy Group

- Beijing Sanyuan Dairy Group

- Nestle Shuangcheng Ltd.

- Heilongjiang Wondersun Dairy Co.Ltd.

- Guangdong Yashili Group Co.Ltd.

For more information visit http://www.researchandmarkets.com/research/f02a4c/market_research_re

Source: Business Wire

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