1、The ongoing modernisation of Chinas dairy sectorThe ongoing modernisation of Chinas dairy sectorThe ongoing modernisation of Chinas dairy sector- 2 -The ongoing modernisation of Chinas dairy sectorIntroductionDairy farming sectorStagnating growth and farmconsolidationDairy farm modernisationHigh pro
2、duction costsGeographic and seasonal mismatch Ambitious growth targetFuture dairy farm modernisationDairy processing sectorConsolidated industry structure Verticalintegration and cross-border expansionProduct mixUHT milkFresh milkYogurtIce cream CheeseInfant milk formulaGovernment policies for the d
3、airy industry34Keys to success36Content467111316171819202223242425272930The ongoing modernisation of Chinas dairy sectorIntroductionChina has long aimed to increase dairy consumption in order to improve public health and nutrition. In 2006, Prime Minister Wen Jiabao said “I have a dream that every C
4、hinese person, especially children, can drink one jin of milk per day” (note: one jin is equal to 0.5 kg).1 The 2009 Dairy Industry Policy stated that per capita milk consumption was a key indicator of the countrys standard of living.2 Chinas per capita dairy consumption is currently less than 100 g
5、rams3 perday,compared to the national daily recommendation of 300 grams.4With these goals in mind, governmentpoliciesaim to increase domestic production by nearly 50% by 2025.5Between 1980 and 2006, Chinas raw milk production increased by more than 2000% from 1.4 million tonnesto over 30 million ton
6、nes. Production peaked at 33 million tonnes in 2012. Consumption has continued to increase, but dairy production has declined. More than 30% of Chinas dairy products (measured in raw milk equivalents) now come from imports, compared to about 5% in 2007.6, 7China dairy production and net imports (ton