China’s Economy & Dairy Industry: Cooling?

The slowdown in China’s economy during H1 has impacted on the dairy industry as expected. According to the National Bureau of Statistics (NBS), China’s GDP reached USD1.69 trillion (RMB10.8 trillion) in Q1, up 8.1% over Q1 2011. Whilst in theory impressive this was the 5th quarterly slowdown and the slowest rate of growth in almost 3 years. Recent estimates for Q2 tend to range between 7.2-7.5%, according to CCM International’s June issue of Dairy Products China News.

Moreover many economists suggest that in reality a growth rate of about 6% in Q1 is likely to have been a fairer reflection of the situation; this view is supported by various indicators which have proven less positive, such as production volumes of steel and cement, total export values and so on.

Electricity production — a key indicator for economic development — is a prime example: it stood at 1,144.6 billion kwh in Q1, up 7.1% over Q1 2011. However production in May was 389.8 billion kwh, just up 2.7% over May 2011. The June Purchasing Managers Index has slipped and all the figures suggest that the economy is decelerating.

The Dairy Association of China (DAC) has quoted data from NBS giving the dairy industry’s output at 5.47 million tonnes in Q1, up by only 5.8% over Q1 2011. However, this figure is 120,000 tonnes lower than that given for Q1 2011 by the China Economic Monitoring and Analysis Centre (CEMAC) – this organisation, itself part of the NBS – hasn’t released its figures this year, possibly due to the downtrend being seen.

In January-May, the output of domestic dairy products is being given as 9.37 million tonnes, up 7.1% over the same period of 2011 – this represents a slow down, as the growth rate in January-May last year (vs. the same period in 2010) was 12.1%.

Similarly, liquid milk products represented 7.93 million tonnes – up 8.3% over the same period of 2011, compared with a rise of 11.6% in the first five months of 2011.

This situation exerts great pressure on the domestic dairy industry, with some northern provinces now stockpiling milk powder. Some producers have also resorted to culling, and there have been warnings that if the situation deteriorates as in 2009, the industry will be badly hit again.

However, this is a shortsighted perspective. Recently Mr. Zhang, Vice President of School of Agricultural Economics and Rural Development at the Renmin University of China, noted that China’s economy currently faces a cooling period due to the problems in the real estate and equity markets — the 2 key drivers for the development of China’s economy in the past 10 years. The management rights transfer of rural farmland is expected to be the key driver of China’s next economic cycle. In China, the only way to obtain large amount of rural farmland is to invest in agriculture. At present, the Chinese government has only hinted at its intentions in this respect on CCTV – this is a likely area of policy developments once Mr. Xi Jinping takes over as State President later this year. It is clearly timely for businesses to invest in agriculture now, hence the recent expansion of groups such as COFCO, Modern Dairy, Fonterra and Yihai Kerry in the agricultural sector.

Despite the present economic difficulties, the future dairy market potential is evident. In fact, ongoing food safety concerns seems likely to represent a much more significant problem for the local dairy industry: this is amply highlighted by processors who need to recombine relying on imported milk powder whilst some local milk powder producers are left with capital tied up in stocks!

Source: Dairy Products China News  1206

http://www.cnchemicals.com/Newsletter/NewsletterDetail_22.html

Content of Dairy Products China News 1206:

Further Revision of Standards for Dairy Products Likely

China’s Economy & Dairy Industry: Cooling?

Average Market Prices of Imported WMP & SMP Decrease

Dairy Processors Focus on Largescale Dairy Farms

Government Releases 12th Five-Year Plan for National Food Safety Standards

Government Strengthens Supervision of the Feed Sector

Maiquer Applies for Listing

Flower Cow Milk’s Development Strategy

Fengxing Dairy’s 60th Anniversary

Bright Dairy: Premium Development Strategy

Government Strengthens Livestock Breeding Subsidy

Hongxing Dairy Launches Value Range

Dairy Products China News, a monthly publication issued by CCM International on the 30th/31st of every month, brings you the latest information on new market dynamics, company dynamics, new dairy products and consumption trend, new legislations and policies and raw milk supply dynamics that are shaping the market.

About CCM International

CCM International is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM International offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1140.html

Discover Potential Business in Dairy Products China News

The May issue of Dairy Products China News has been come out recently. The latest issue focuses on infant formula market, covering the new giant in this market and restriction of bovine colostrum in infant formula. Besides, new standard for food fortification ingredients is discussed in the May issue as well.

China is, as ever, awash with statistics. According to the National Bureau of Statistics the country’s retail sales climbed 14.1% in April to RMB1.56 trillion ($247.8 billion), the slowest increase in the past 66 months. In real terms this represented a rise of 10.9%. The current price figure was less than the 15.2% increase seen in March 2012 and below general expectation. Urban retail sales of consumer products rose 14% to RMB1.36 trillion ($215.36 bn) year-on-year; rural regions’ sales rose 14.5% to RMB204.9 bn ($32.44bn). Last month’s overall economic data was generally weaker than had been anticipated. One example: sales of residential properties fell 13.5% year on year to RMB1.03 trillion during January-April 2012, and sales of office properties fell 14% to RMB 54.3 billion.

The situation has just prompted the Chinese Government to cut the reserve requirement ratio for local banks from May 18 by 50 bps to 20%. The cut was the 3rd in 6 months and frees up an additional RMB400 billion in the banking system, although China’s major banks have declined, looking for a larger cut.

The market future continues to be the subject of intense debate and has been much discussed at recent dairy industry events – notably at SIAL in Shanghai, ADPI in Chicago and even at the DIN conference in London. Despite the information available it struck us in discussions that a number of the exporters and distributors were surprisingly uninformed on the Chinese dairy marketplace. It’s often easier to strike some deals than consider the bigger issues – and there’s always a danger of information overload – but is this the right market or time for a high risk approach?

Check more details and discover the potential business opportunity in Dairy Products China News, co-published by CCM International and Orrani Consulting.

About CCM International

CCM International is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM International offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer. For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Building, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1093.html

April Issue of Dairy Products China News Comes Out

CCM International’s April issue of Dairy Products China News has newly published recently. The latest issue covers a range of sector developments but stand outs are Wahaha seeking dairy farms in Australia and Fonterra looking to expand its dairy farms in China. Heading to farm in either direction demands deep pockets and political goodwill. The idea of partnerships to facilitate such ventures – whether between Fonterra and Shanghai Pengxin or others – may make a lot of sense.

Certainly producing milk in China has state support: the Chinese Government wants international dairy companies to establish industrial-style farms to produce high quality fresh milk for its consumers weary of food scares centred on dairy products. Ironically perhaps – although in truth this signifies a structural adjustment in the sector which should surprise no-one – the corollary of this is that for many dairy farmers in China life is getting harder. The recent reduced prices for milk being paid by Wondersun in Heilongjiang present a contrast to the April prices rises from Mead Johnson and Nestlé. Such price rises appear to have limited impact on sales, reflecting the specifics of the product category.

At a wide level, unexpectedly low import figures for March 2012 reflect modest levels of domestic demand in China. These are figures to watch as private consumption needs to rise to reduce the need for investment spending. Doubters over the economy’s future are not hard to find, although most private sector forecasters remain positive. The Asian Development Bank, for one, expects GDP to rise to 8.5% in 2012 and consumption to grow by 12% in 2012 and 2013, reflecting higher wages and rising government expenditure on social services. It believes the latter will encourage Chinese consumers to save less: going on price trends, they may well have to. Please check the April Issue of Dairy Products China News to discover more.

Headline News in the latest issue include:

-Recently, several large-scale grain & food processors have made steps towards further diversification – a sign of trends in the market which seem likely to accelerate in the future.

-In late February, the General Administration of Customs of China confirms a higher tariff on milk powder imported from New Zealand from 1 March.

-On 6 March, the State Council issues a new policy to support the development of leading agriculture enterprises in line with recent trends in the agribusiness sector.

-Yunnan launches a guideline for the formulation of local food safety standards which is being implemented from 1 April.

-On 14 March, Yili announces its investment programme and development goals for 2012, shortly after the release of its full report for 2011.

-On 3 March, Wahaha reveals its plans for dairy farming in Australia, in line with the company’s diversification and integration strategies.

… …

Dairy Products China News, is co-published by CCM International & Orrani Consulting, which is unique in combining genuinely global experience in the dairy industry. Dairy Products China News brings you the latest information on new market dynamics, company dynamics, new dairy products and consumption trend, new legislations and policies and raw milk supply dynamics that are shaping the market. If you need more information of this newsletter, please feel free to contact us at econtact@cnchemicals.com.

About CCM International

CCM International is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM International offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer. For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_1059.html

Diversification of Large-scale Grain & Food Processors

Recently, a number of leading grain and food processors have moved towards increasing diversification and vertical integration. This is a signal of the growing integration of China’s food industry, a trend which is expected to pick up pace in the future and impact dairy markets as a result, according to CCM International’s April issue of Dairy Products China News

The prime example is Yihai Kerry, a leading agribusiness and food company processing oilseeds, grains, edible oils, palm and laurics into a wide range of high-quality food products, feed ingredients and oleochemicals at ~170 plants. The company is a leading player in multiple market segments in China, such as oilseed crushing, edible oil refining and consumer cooking oils as well as rice and wheat flour milling, etc.

On 3 March, Yihai Kerry announced the commissioning of its production lines for soy milk powder and liquid soy milk with capacities of 8,000 t/yr and 12,000 t/yr respectively: the resulting products will be launched in the East China market first, during June.

This is the group’s first involvement with liquid soy milk. It originally entered the soy milk industry early in 2009 when it acquired a soy milk powder processor in Heilongjiang with a capacity of 6,000t/yr; later, in 2011, it set up an 8,000t/yr soy milk powder production line in Qinhuangdao City, Shandong Province.

There are other similar examples, such as V V Group. On 9 March this leading grain and food processor announced that it will participate in the reconstruction of a white spirits company in Guizhou: it is to hold a 51% share of the new company once the deal is completed, which will be by the end of April. Investors seem supportive: after releasing the news, the company’s share price rocketed, reaching the upper circuit limit (10% in China) in the following days.

Also in March, the beverage giant Wahaha indicated its intention to expand into dairy farming in Australia, as well as to grow its health food and beverage business and supermarket operations in China (please see the following article in this issue, Wahaha to Invest in Dairy Farming in Australia?).

Previously we have seen COFCO buying into China’s largest liquid milk processor Mengniu. In July 2009 it acquired a leading stake of about 20% together with Hopu Investment Management– and this year has stepped this up to 28.09% after the quality scare hit Mengniu’s products. This has been the key example of diversification affecting China’s dairy sector: its involvement since then has undoubtedly allowed Mengniu to accelerate its expansion in China and overseas (please see Dairy Products China News Vol.2 August Issue, p7 & Vol.4 January Issue, p9).

The key goal of these large-scale grain & food companies is to optimise their product mix and increase their profitability and competitiveness: such diversification builds an increasingly integrated supply chain. There are also varying specific motives behind the expansion of these large-scale companies into new sectors. For example, for Yihai Kerry,the launch into liquid soy milk can help the company take full advantage of its upstream soy processing. For V V Group, its efforts to develop its white spirit business since 2009 have played an increasingly important role in the company’s development. In H1 2011, the company’s liquor business achieved sales of USD158.64 million – 41% of its total revenues and equaling the proportion of sales made up by its soy milk powder and soy milk business!

Expansion of this type exemplifies the integration of China’s food industry over the last 2 years, and fits well with the 12th Food Industry 5-Year Plan released on 31 December 2011. According to that document, the government plans to perfect food companies’ organisational structure in order to help them become more competitive, to enhance consolidation in the sector and to eliminate businesses with outdated technology. The government also plans to “foster” around 23 food companies with annual sales in excess of USD1.58 billion (RMB10 billion) and 300 famous food brands. It plans for integration to be accelerated in the next 4 years, and the larger agribusiness companies will be the main beneficiaries of this approach (please see Dairy Products China News Vol.5 February Issue, p6, Launch of the 12th Food Industry Five-Year Plan (5YP)).

Source: Dairy Products China News  1204

http://www.cnchemicals.com/Newsletter/NewsletterDetail_22.html

Content of Dairy Products China News 1204:

Diversification of Large-scale Grain & Food Processors

New Zealand Exceeds Trigger Levels Again

Government to Support Leading Agriculture Enterprises

Yunnan Launches Management Measures for Local Food Safety Standards

Yili’s Investment Programme for 2012

Wahaha to Invest in Dairy Farming in Australia?

North Dairy Expands in Ningxia

Xiaoxiniu Biological Faces Challenge to Go Public

Companies Increasingly Target Milk Production

Avante International Launches Infant Formula Products

OZ Care Formula Launch

Auscow Launches New UHT Milk

Dairy Products China News, a monthly publication issued by CCM International on the 30th/31st of every month, brings you the latest information on new market dynamics, company dynamics, new dairy products and consumption trend, new legislations and policies and raw milk supply dynamics that are shaping the market.

About CCM International

CCM International is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM International offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source : http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1037.html

Expanding Dairy Consumption Market in China

Driven by growing affluence, rising nutrition awareness, fast expanding retail chains and increasing dairy industry investment in promotion, China is consuming more and more dairy products and will become the largest dairy consumption market in ten years with the largest population. The average annual growth rate (AGR) of China's sales amount of dairy products was around 20% from 2010 to 2011, though the industry was badly hit by the 2008 melamine scandal. What is the future trend of China’s dairy products market? How is the consumption development trend?

Many foreign companies aim at the booming dairy market in China and would like to supply products to Chinese consumers. Cooperating with domestic manufacturers or distributors is a great way to sell products. What is the company dynamics of key dairy players? What is the latest cooperation news?

Besides, the direct interest of most foreign businesses is in the ingredient/commodity market, this means that they are possibly more interested in what competing suppliers (of  dairy ingredients/commodities) are doing in the market – what market segments, products, customers, applications are they focused on, which trading/distribution/marketing partners are they working with, what initiatives are they undertaking?

Meanwhile, China's dairy market is greatly influenced by the governmental policies, consumer habits and Chinese dairy companies' development and marketing strategies. What kind of impact does the governmental policy bring to domestic dairy product industry? You might find out all answers in CCM International’s monthly publication Dairy Products China News, on the 30^th /31^st  every month.

Dairy Products China News brings you the latest information on new market dynamics, company dynamics, new dairy products and consumption trend, new legislations and policies and raw milk supply dynamics that are shaping the market. It provides a great way to dig out the Chinese dairy product market. If you are interested in this newsletter, please feel free to contact us at econtact@cnchemicals.com.

About CCM International

CCM International is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM International offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, and Import/Export Analysis all through its new proprietary product Val Tracer. For more information, please visit http://www.cnchemicals.com.

CCM International
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huizhou Commercial & Trade Mansion, No.80 Xian lay

Hong Road, Guangzhou

510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_1017.html

Dairy Products China News Helps You Grasp Latest Market Trend

Boosted by people’s growing nutrition awareness, fast expanding retail chains and increasing dairy industry investment in promotion, China’s dairy consumption market is developing fast. The average annual growth rate (AGR) of China's sales amount of dairy products was around 20% from 2010 to 2011, though the industry was badly hit by the 2008 melamine scandal.

There is considerable market room for dairy products in China, as the per capita annual consumption of dairy products is merely 27.6kg in China, much lower than that of the global figure 100kg. It is estimated that the sales value of dairy products in China will exceed USD21.9 billion in 2008 and 29.2 billion US dollars in 2010.

How to occupy a good position in this potential market has become top issue to all dairy players. Dairy Products China News, published by CCM International on the 30^th /31^st  every month, might help you grasp the updated market dynamics and trend, and know how your business can be involved.

Provided the latest information of supply, demand and sales of various dairy products, as well as company dynamics in China, readers can learn intelligence of enterprises in China for seeking partners and keep track of your competitors’ actions so as to win the fierce competition.

By analyzing the impacts of new government policies and legislations, this newsletter can also make you pay close attention to the consumers’ taste, habit etc., for developing new products.

The main research scope of this newsletter contains:

-Raw milk

-Milk including milk powder, milk beverage, condensed milk, evaporated milk, infant formula and cream

-Yoghurts

-Cheese

-Whey

-Butter

-Ice cream

-Casein

-Other dairy products introduced to China for the first time

-Dairy substitutes including soy milk, coconut milk, almond milk and rice milk

Dairy Products China News provides you a great way to discover more potential business opportunities in the Chinese dairy product market. If you are interested in this newsletter, please feel free to contact us at econtact@cnchemicals.com.

About CCM International

CCM International is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM International offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer. For more information, please visit http://www.cnchemicals.com.

CCM International
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_1016.html

Taurine Industry in China is Flourishing

CCM has published a new report entitled Production and Market of Taurine in China, indicating that the domestic demand of taurine as well as overseas demand is thriving with the increasing recognition of nutrition enhancer. The domestic market is of great potential while overseas market is still an important motive force for the development of China’s taurine industry.

The report aims to give you a comprehensive perspective on China’s taurine industry, from aspects of production situation, price, consumption pattern and future forecast.

Taurine is popular in developed countries for its indispensable role in strengthening nutrition. Driven by the increasing demand, taurine industry in China has kept developing in recent years, posting an increase of 27,639 tonnes in output with a CAGR of 36.1% from 2008 to 2010.

Taurine is an export-oriented product in China—almost 90% of the global taurine is produced by China, which is mainly exported to the US, Europe and Japan. During 2008 and 2010, China's export volume of taurine has been increasing quickly with a CARG of 36.6%.

Moreover, the apparent consumption of taurine in China has been increasing rapidly in recent years for the surging demand from domestic market, especially the food and beverage industry. It can be estimated that the taurine industry in China will keep flourishing.

If you are interested in CCM’s Production and Market of Taurine in China, please feel free to contact us at econtact@cnchemicals.com.

(Guangzhou China, September 27, 2011)

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

China Taurine Production and Market Report Coming Soon

CCM will publish a new report entitled Production and Market of Taurine in China. The report will give you an in-depth analysis on China’s taurine industry from aspects of supply (output, capacity and manufacturers), price, technology, domestic consumption, export, etc., and then it will summarize the future development of China’s taurine industry.

Taurine is widely used in beverages, dairy products and foods, etc., in the US, Japan and Europe, and they’ve become major export destinations of China, a key taurine manufacturer and exporter in the world. With capacity accounting for nearly 80% of the world's total, China has achieved an output of more than 50,000 tonnes in 2010. The global demand for taurine has kept growing since 2008 with a rate of about 10%-20%, while there is little demand for taurine in China, and 90% of its taurine is exported to the three destinations mentioned above.

Though dozens of companies are producing taurine in China, the total capacity of the top covers 80-90% of the nation’s total in recent years. With the development of production technology, an increasing number of manufacturers adopt environmentally-friendly technology by using the raw material of epoxy ethane.

The following highlights will be shared in this report:

- Information about production situation (manufacturers, capacity, output, technology and price) on China’s taurine industry;

- Current situation of taurine consumption and export in China;

- Main drivers and barriers for the development of China’s taurine industry;

- Future development trend of China’s taurine industry.

If you are interested in this report, please feel free to contact us at econtact@cnchemicals.com.

(Guangzhou China, September 15, 2011)

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.
Please visit http://www.cnchemicals.com for more information or contact econtact@cnchemicals.com

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China