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China Dairy Market Review And Outlook 2008 2009 Proposal

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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. ( China Dairy Market Review And Outlook 2008 2009 Proposal - Business Market Reports )

Research Background
There are significant changes in global dairy market in 2008. Due to rising cost and tight supply global dairy price hit a new high in 2007, which greatly influenced dairy policies in many countries, so supply and demand relationship got dramatically changes among those countries, including enhancing domestic production, reducing exports, stimulating dairy supply. In addition, the economic depression has spread around the world, causing decreasing resident income and consumption as well as demand for dairy products. Raw milk and dairy product prices are continuously dropping, including skim and whole milk powder, whey and cheese.

In 2008 china dairy industry should be separated two stages by Melamine Scandal. Before that it still grows at a fast rate and State Stat. Dept. shows that in the first eight months of this year, the yield of liquid and solid milk products are 10,178kt and 2,495kt, up by 12.07% and 7.34% than the same period of last year respectively; after the scandal in both Sept and October they dropped by 18.7%, 32.5% and 15.58%, 32.39% respectively. Resident demand for dairy products is seriously affected and the production of Yili and Mengniu dropped with 90%. Sanlu group is even closed and sold for auction. The whole dairy chain is making great losses after Melamine Scandal and dairy export is also facing unprecedented crisis.

In order to regulate china dairy market, in the first half year of 2008 the Government issued Requirements on Dairy Processing Permits and Dairy Industry Policies in March and May. After the Melamine Scandal, the Government issued Notification on Enhancing and Supervising Dairy Quility Regulation and Proposals on Dairy Industry Resumption in October and November and Food Safety Act will be implemented soon to revise emerged problems related to the scandal. All these show that the Government is enhancing laws and regulations in dairy industry and dairy consumers are paying more attention on quality. Domestic dairy producers are changing strategy to reply new macro-environment. It is a good chance for international dairy enterprises to invest in China.

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