The slowdown in China China
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
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 China
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!
http://www.cnchemicals.com/Newsletter/NewsletterDetail_22.html
Content of Dairy Products China
Further
Revision of Standards for Dairy Products Likely
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
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
CCM International Ltd.
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