China Dairy Industry Investment Research Report
Research Background and Purpose
The Chinese dairy industry has been sustaining a rapid growth, and is still one sector of the food industry that enjoys the best growing momentum in China. And China witnesses the fastest growth of the dairy industry in the world, and the overall sector is changing for the better year on year. The Dairy industry faces both opportunities and challenges, and is at the transitional period. The whole supply chain contains lots of investment opportunities. Specially, the huge market potential makes the Chinese dairy industry one of the fields enjoying the highest investment value.
Organized by BOABC and Beijing Orient Trust Investment Consultant Co. Ltd., the report is composed by senior Chinese experts and investment consultants. The report adopts data from authoritative organizations including the National Bureau of Statistics, the National Information Center, China Dairy Industry Association, Dairy Association of China, the Customs General Administration, and other legal channels. Also, the report uses materials from the long-term in-depth follow-up and field surveys of the two companies. After value chain analysis, SWOT, KSF and competition analysis, the report has analysis and evaluation on value of investment, direction of investment, way of investment and risks of investment in the Chinese dairy industry, and provides relevant suggestions on investments. The target readers of this report are industrial investors, strategic investors or financial investors both from home and abroad who pay attention to the Chinese dairy industry, and it is rare to see such a report. The report also provides reference for decision makers of giants of the dairy industry or related industries, research institutions, investment banks, funds and security agencies to learn the current development of Chinese dairy industry, to master the trend and investment opportunities.
The quotation for the English version is US$3,000/copy, and 20,000 yuan/copy for the Chinese version.
Table of Contents
Part One: Analysis of Major Economic Features of China’s Dairy Industry, 2005-2006
Chapter One: Analysis of Dairy Cattle Farming
1. Overall Situation of Raw Milk Market
1.1 Dairy Cattle Inventory
1.2 Milk Yield of Dairy Cattle
1.3 Cow Milk Production
2. Characteristics of Regional Layout of Raw Milk Production
2.1 Main Producing Provinces of Raw Milk
2.2 Market Share of Main Producing Provinces of Raw Milk
2.3 Plan of Advantageous Regions in Raw Milk Production
2.4 Raw Milk Production Extends to Non-traditional Regions
3. Organizational and Operational Mode of Raw Milk Production
3.1 Dairy Farming by Small-size Holdings
3.2 Dairy Farming Areas
3.3 Modern Farms
3.4 Comparison of Input-output of Different Organizational and Operational Modes
4. Comparison of Input-output between Dairy Farming and Crop Production and Other Animal Farming
4.1 Comparison of Per Capita Possession between Milk and Other Farm Products, Animal Products or Aquatic Products
4.2 Comparison of Input-output between Dairy Farming and Crop Production and Other Animal Farming
5. Investments in Dairy Farming
5.1 Source of Investments
5.2 Investment Scale
6. Key Factors Affecting Development of China’s Dairy Farming Industry
6.1 Policy
6.2 Other Factors
7. Trend of Dairy Farming in China in the Coming 5-15 Years
Chapter Two: Dairy Processing Industry
1. Categories and Composition of Dairy Products
1.1 Categories
1.2 Composition
2. Quantity of Dairy Processing Companies and Relative Scales
2.1 Quantity of Dairy Processing Companies and Regional Layout
2.2 Classification Criteria of Scaled Enterprises
2.3 Regional Layout of Enterprises of Different Scales
3. Growth of Dairy Industry and Features of Lifecycle
3.1 Growth of Dairy Industry
3.2 Features of Lifecycle of Dairy Industry
4. Barriers for Entry and Exit of Dairy Industry
4.1 Capital Barrier
4.2 Technical Barrier
4.3 Policy Barrier
5. Innovation of Dairy Production Technique, Introduction of New Products and Speed of Technical Renovation
5.1 Backwardness of Standardization of Dairy Production Technique, New Products and Technical Renovation
5.2 Key Factors Affecting Backwardness of New Products or Technical Renovation
6. Current Characteristics of Dairy Products
6.1 High Standardization and Homogeneity
6.2 Labeling of Products Should Be Regulated
7. Current Efficiency of Production Capacity of Dairy Companies
7.1 Current Efficiency of Production Capacity of Dairy Companies
7.2 Key Factors Affecting Efficiency of Production Capacity of Dairy Companies
8. Capital Operation and Profit-generation Level of Dairy Industry
8.1 Current Status of Capital Investment
8.2 Overall Profit-generation Level of Dairy Industry
8.3 Comparison of Profit-generation Level of Dairy Companies of Different Scales
8.4 Comparison of Profit-generation Level of Dairy Companies of Different Economic Types
9. Key Factors Affecting Development of Dairy Industry in China
10.1 Policy
10.2 Other Factors
10. Trend of Dairy Processing Industry in China in the Coming 5-15 Years
Chapter Three: Analysis of Dairy Market
1. Relevant Economic Environment of Dairy Market
1.1 Overall Economic Situation of the Nation
1.2 Development Momentum of Domestic Food Industry
2. Market Scale
3. Market Scale and Growth of Different Regions
3.1 North China
3.2 Northeast
3.3 East China
3.4 Central South
3.5 Southwest
3.6 Northwest
4. Growth of Segmented Dairy Market
4.1 Fresh Milk
4.2 Yoghurt
4.3 Milk Powder
4.4 Cheese
4.5 Butter
4.6 Milk Drinks
4.7 Ice Cream
4.8 School Milk
5. Dairy Import and Export
5.1 General Situation of Dairy Trade
5.2 Import
5.3 Export
6. Distribution Channels of Dairy Products
6.1 Traditional Channels
6.2 Modern Channels
7. Marketing Strategy of Dairy Products
7.1 Price Competition Strategy and Scaled Economy
7.2 Innovation of Dairy Marketing
8. Market Competition of Dairy Industry
8.1 Competition Pressure of the Industry
8.2 Competition Pattern of the Industry
8.3 Regional Scope of Industrial Competition
8.4 Trend of Industrial Competition
9. Key Factors Affecting Development of Dairy Processing Industry in China
9.1 Policy
9.2 Other Factors
10. Growing Trend of Dairy Market of China in the Coming 5-15 Years
Chapter Four: Analysis of Dairy Consumption
1. General Demand for Dairy Products
1.1 Consumption Structure
1.2 Consumption Varieties
1.3 Per Capita Consumption Level
2. Features of Dairy Consumption Demand
2.1 Motives for Consumption
2.2 Consumption Habit
2.3 Changes of Consuming Groups
2.4 Impacts on Consumption from Marketing Strategy
3. Key Factors Affecting Dairy Consumption
3.1 Constraints
3.2 Driving Force
4. Trend of Changes of Dairy Consumption Demand in the Coming 5-15 Years
Chapter Five: Analysis of the Top 10 Dairy Companies
1. General Situation of the Top 10 Dairy Companies
1.1 Scale of Raw Milk Processing
1.2 Market Share
1.3 Brand Value of Enterprises
1.4 Technology and Capability
1.5 Quality and Product Functions
1.6 Innovation Ability in New Products
1.7 Network of Dealers and Distribution Ability
1.8 Financial Resource and Profit-generation Ability
1.9 Status of Relative Cost
1.10 Crisis Management Ability
2. Case Study of the Top 10 Dairy Companies
2.1 Yili
2.2 Mengniu
2.3 Sanlu
2.4 Bright
2.5 Wandashan
2.6 Sanyuan
2.7 Yinqiao
2.8 New Hope
2.9 Nestle (China) Dairy
2.10 Dumex
Part Two: Analysis of Investment
Chapter Six: Investment Opportunity
1. Maturity of Main Links of the Industrial Chain
2. Profit Distribution of Various Links of the Industrial Chain
3. Competitiveness of Various Links of the Industrial Chain
4. Comparison of Investment Opportunity in the Industrial Chain
Chapter Seven: Suggestions on Route of Investment in Dairy Industry
1. Investment by Domestic Companies (case study)
1.1 Investment
1.2 Experience
1.3 Features of Investment
2. Investment by Foreign Companies (case study)
2.1 Investment
2.2 Experience
2.3 Features of Investment
3. Design of Optimal Investment Route
3.1 Target of Investment
3.2 Mode of Investment
3.3 Expected Financial Situation
3.4 Way of Exit of Risk Capital
Chapter Eight: Investment Risk and Countermeasures
1. Market Risks
2. Policy Risks
3. Other Risks
China Milk Powder Market and Competition Situation Research Report
Research Background and Purpose
Milk powder was the most important dairy product before the early half of 1990s. However, as Tetra Pak’s aseptic filing products powering into Chinese dairy industry, UHT milk keeps a sustainable and speeding development with an annual average increasing rate of 89.37% between 1999 and 2004. Thus, it promotes consumption pattern of Chinese dairy market to liquid milk as the main part from milk powder as the main part. Currently liquid milk takes up an absolutely main part of Chinese residents’ dairy consumption, e.g., per capita dairy consumption of Chinese urban residents was 22.2 kilograms, in which liquid milk amounted to 21.69 kg (fresh liquid dairy products were 18.79 kg, and yogurt was 2.9 kg), and milk powder was only 0.51 kg.
In China, milk powder is usually divided into two categories by insiders, one category is packet milk powder which directly faces terminal market and takes up 90% of total amount of milk powder estimated by insiders; while the other is industrial milk powder which is usually called big package milk powder and takes up 10% of the total amount. Industrial milk powder is compared with packet milk powder on terminal market, so there is no substantial difference between them (e.g., this is different from industrial salt and edible salt). Because industrial milk powder is usually used as important raw material of dairy products (e.g., restituted milk, yogurt, lactic acid drinks, ice cream, etc.) and dairy food (e.g., bread, cake, biscuit, milk chocolate etc.), it is lower than packet milk powder in many aspects---deep-processing degree, technological level, packing form, packing material and so on.
Milk powder is the most important solid dairy product, which currently takes up more than 80% share of Chinese solid dairy products. There are several hundred milk powder processing enterprises on Chinese market with different scales and standards. In 2004, there were only 30 safe milk powder enterprises published by the State Bureau of Quality Supervision, which was less than one tenth of the total number. The concentration ratio of milk powder market is much lower than liquid milk market. Enterprises whose main business is not milk powder like Mengniu try their best to enter milk powder market. A lot of changes happened to milk powder market. The Fuyang Inferior Quality Milk Powder Event in 2004 reduced the development of milk powder market that year, with an increase of only 1% compared with the same period of 2003, which was much lower than 2002 (increase rate 25.44%) and 2003 (increase rate 50.56%). In the first half year of 2005, the event of exceed stipulated content of iodine of Nestle infants’ milk powder had a bad effect on Nestlé’s brand image and market sale. So it still difficult to say how the milk powder market will make for.
The prices on Chinese milk powder market present Chinese characteristics. As to industrial milk powder or big package milk powder, the price on international market has significant influence to domestic price of industrial milk powder. However, the prices on international market seldom have influence on domestic prices of packet milk powder.
At present, the import amount of milk powder in China has reached 13% of the total supply amount and 60% of the total supply of industrial milk powder. Milk powder imported from Oceania takes up 86%, in which 75% is from New Zealand. In 2005, China entered free trade area convention with New Zealand. At the same time, the import duty was reduced to 10% from 15% in China, so international milk powder market will have great influence on the supply of milk powder market in China.
However, up till now, there has not a special research report of milk powder market in China. There is still no deep research on the following issues: How many enterprises are processing milk powder now? How many enterprises are processing industrial milk powder? How many dairy farmers have been brought along by them to raise cow? What will be the influence to these enterprises and dairy farmers or even economy in these regions if we restrict restituted milk? What is the cost and effect situation, marketing channels, and consumer distribution of milk powder enterprises in China? And what will be the influence on Chinese milk powder market and dairy industry brought by increasing of vale of RMB? This report contains full and accurate cited statistics from 2000 to 2005, in which there is especially much deeper division of milk powder statistics of the year 2004 and 2005. Statistic resource in this report is authoritative, which includes first hand statistics gained from in-depth interviews with milk powder processing enterprises and sellers, and second hand statistics, e.g., China Custom, China Dairy Industry Association, Dairy Association of China, National Statistic Bureau, Ministry of Agriculture, All China Commercial Information Center, American Agriculture Ministry, FAO and so on. It is hoped that this report---as the first special research report of milk powder in China will help you in your work.
Table of Contents
CHAPTER ONE Basic Summary of Current Milk Powder Market in China
CHAPTER TWO General Situation of Dairy Market in China
2.1 Analysis of Raw Milk Supply
2.1.1 Dairy Cattle Inventory
Figure1, Growth Trend of Dairy Cattle Inventory in China, 1995-2005
2.1.2 Milk Output
Figure 2, Growth Trend of Milk in China, 1995-2005
2.1.3 Regional Layout of Milk Source
Figure 3, Dairy Cattle Inventory in Key Provinces in 2004
Figure 4, Proportion of Dairy Cattle Inventory of Key Provinces in 2004
2.1.4 Procurement Price of Milk
Figure 5, Procurement Price of Raw Milk and Fresh Milk in All Provinces, 2004-2005
2.2 Production of Dairy Products
2.2.1Liquid Milk
Growth Trend of Liquid Dairy Output
Regional Layout of Liquid Dairy Output
Structure of Liquid Dairy
Figure 6, Growth Trend of Liquid Dairy Output in China, 1998-2005
Figure 7, Layout of Liquid Dairy Production in China
Figure 8, Growth Trend of Different Categories of Liquid Dairy in China, 1999-2005
Figure 9, Trend of Structural Changes of Liquid Dairy in China, 1999-2005
2.2.2 Solid Dairy Products
Growth Trend of Output of Solid Dairy Products
Regional Layout of Output of Solid Dairy Products
Structure of Solid Dairy Products
Figure 10, Growth Trend of Output of Solid Dairy Products in China, 1998-2005
Figure 11, Layout of Production of Solid Dairy Products in China
Figure 12, Output of Solid Dairy Products in China by Category,1999-2003
Figure 13, Trend of Structural Changes of Solid Dairy Products in China,1999-2005
Figure 14, Growth Trend of Milk Powder Output in China,1998-2005 Figure 15, Trend of Structural Changes of Milk Powder Categories in China, 1999-2005
Figure 16, Composition of Milk Powder in China in 2004
2.3 Consumption of Dairy Products
2.3.1 General Situation of Consumption of Dairy Products
Figure 17, Trend of Per Capita Consumption Amount of Dairy Products by Urban Citizens, 1995-2005
Figure 18, Growth Trend of Consumption of Different Dairy Products by Urban Citizens, 2000-2005
2.3.2 Consumption Structure of Dairy Products
Figure 19, Structural Changes of Consumption of Dairy Products by Urban Citizens, 2000-2005
Figure 20, Consumption of Dairy Products by Urban Citizens in Jan-May, 2005
2.3.3 Consumption Regions of Dairy Products
Figure 21, Growth of Per Capita Consumption of Urban Citizens in Partial Provinces in Jan-May, 2005
Figure 22, Per Capita Consumption of Milk Powder by Urban Citizens in Different Provinces, 2003-2004
2.3.4 Consumption Price of Dairy Products
Figure 23, Trend of Average Market Price of Milk, Jan-Nov, 2005
Figure 24, Market Price of Milk in Different Provinces, Jan-Nov, 2005
2.4 Import and Export of Dairy Products
2.4.1 Import Structure of Dairy Products in China
Figure 25, Import Structure of Dairy Products in China
Figure 26, Trend of Import Changes of Dairy Products, 2001-2005
2.4.2 Import Origins of Dairy Products in China
Figure 27, Trend of Shares of Key Original Countries of Dairy Products
2.4.3 Import Flow of Dairy Products in China
Figure 28, Import Flow of Dairy Products in China
2.4.4 Export Structure of Dairy Products in China
Figure 29, Export Structure of Dairy Products in China
2.4.5 Export Flow of Dairy Products in China
Figure 30, Export Flow of Dairy Products in China
2.4.6 Export Provinces of Dairy Products in China
Figure 31, Export Provinces of Dairy Products in China
2.5 Import and Export of Milk Powder in China
2.5.1 Categories of Milk Powder
2.5.2 Trend of Milk Powder Import
Figure 32, Trend of Import Composition of WMP and SMP in Recent Years
Figure 33, Trend of Import Structure of Milk Powder in China, 2002-2005
Figure 34, Trend of Import Volume of Milk Powder in China, 2002-2005
Figure 35, Trend of Import of WMP in China, 2002-2005
Figure 36, Trend of Import of Whole Sweet Powder in China, 2002 -2005
Figure 37, Trend of Import of WMP Not Containing Added Sugar in China, 2002 -2005
Figure 38, Trend of Import of SMP in China, 2002-2005
2.5.3 Original Countries of Milk Powder
Figure 39, Proportion of Milk Powder from New Zealand, 2002 -2005
Figure 40, Trend of Structural Changes of Milk Powder from New Zealand, 2002-2005
Figure 41, Key Original Countries of SMP
Figure 42, Layout of Key Original Countries of Skimmed Milk in 2005
2.5.4 Flow of Imported Milk Powder
Figure 43, Flow Changes of Imported SMP in China, 2002-2005
Figure 44, Flow of Imported SMP in China in 2004
Figure 45, Flow of Imported SMP in China in 2005
Figure 46, Flow of Imported WMP Not Containing Added Sugar, 2002-2005
Figure 47, Flow of Imported WMP Not Containing Added Sugar in China in 2004
Figure 48, Flow of Imported WMP Not Containing Added Sugar in China in 2005
Figure 49, Trend of Flow Changes of Imported Whole Sweet Powder, 2002-2005
Figure 50, Flow of Imported Whole Sweet Powder in China in 2004
Figure 51, Flow of Imported Whole Sweet Powder in China in 2005