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Market Research Report on Chinese Dairy Product Industry, 2008-2010

Market Research Report on Chinese Dairy Product Industry, 2008-2010
China Research & Intelligence

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Market Research Report on Chinese Dairy Product Industry, 2008-2010
Description
Selling point This report analyzes the status quo of China’s dairy product industry, including supply & demand and the competition situations. It is a reference of great value for investors to understand the current situations of China’s dairy product industry and major players so as to seize investment opportunities and avoid risks. Summary of the report The dairy product industry has been one of the fastest growing industries, with an annual growth rate of over 20%. By the end of 2007, the cow population reached 12.189 million herds, with 14% growth compared to 2006. The total milk output of 2007 reached 36.334 million tons, up 10% from 2006. The cow milk output stood at 35.252 million tons, ranking 3rd around the world, second only to the US and India.

In 2007, China’s dairy product industry sustained rapid growth, with an annual output of 17.87 million tons, up 21.79% from 2006. Fluid milk output reached 14.41 million tons, up 17.83% from 2006. The gross revenue of the dairy product industry stood around 19.5 billion USD, up over 20% from 2006. The sales were around 19 billion USD, up about 25% growth year on year.

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Market Research Report on Chinese Dairy Product Industry, 2008-2010

Chart

China’s dairy product outputs from 2003 to 2007

产量:百万吨 20 16.22 15 10 5 0 2003 2004 2005 2006 2007 9.49 7.24 13.1 17.87

Recent years saw the slowing down of the growth of China’s pure milk market, particularly in large and medium-sized cities where the market is on the verge of saturation and the profit margins are narrow, whereas the profit margins of the domestic yogurt market remain much higher than overseas mature markets with a growth rate of over 30%. The growth rate of particular types of yogurt like fruit grain yogurt even reached 40%, which indicates the huge potential of the domestic yogurt market.

In the second half of 2007, due to factors such as the price hike of dry milk on the international market, the short supply of goods and the increase of the domestic food production demand, the production and sales of milk powders witnessed a good trend with the price going up substantially. Especially since August, the price of the whole dry milk and its exports surged drastically. The national dry milk exports of 2007 reached 62 thousand tons, with a growth of 41,400 tons and 201.5% year on year while imports declined by 36,700 tons or 27.2% year on year. In 2007, the domestic dry milk supply decreased by 78,100 tons, which invigorated the once-sluggish production of dry milk. Corporations all stepped up production which sent the dry milk into short supply. In the past few years, the development of China’s dairy industry was developing without regulation and scrambling for milk source rampant. The invigoration of the dry milk market

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exacerbated the chaos of the milk source scramble and triggered the spiraling of milk price. Survey shows that the range of increase in milk prices from January to September in 2007 was between 10% and 30% while the widest range could be between 40% and 50%. In terms of regional differences, the range was wider in the northern areas than in the southern areas, in dry milk production areas than in fluid milk production areas and in rural areas than in urban areas. Since November 2007, milk output in the northern areas declined, bringing the price up to 50—55 cents/kg. (In the corresponding period of 2006 the price is 25—30 cents/kg). At the beginning of 2008, the international dry milk price fell back significantly and China’s exports of dry milk dropped month by month.

In the autumn of 2008, the “melamine” scandal gave heavy blow to China’s dairy product industry, and consumers began to lose confidence in the safety of domestic dairy products. On one hand, this scandal had a disastrous impact upon the sales of China’s dairy products and the impact may even be felt by other food-related industries. On the other hand, it has altered the course of development of China’s dairy product industry. Its main influences are as followed:

1. It affects the process of Mergers and acquisitions of China’s dairy product industry. While consumers cease to trust the quality of national dairy enterprises, regional dairy enterprises gain the opportunities for development.

2. It provides opportunities for overseas dairy enterprises to enter China’s market as imported products with quality assurance become the first choice of many Chinese people. A lot of price-insensitive consumers start to buy imported products or products of foreign-capital enterprises. The brands like Nestle, Mead Johnson and Abbott Labs that have been on China’s market for long all promote their marketing campaigns. Besides, President from France and Country Goodness from New Zealand also launch their products into China’s market. Particularly, the lucrative baby milk powder market has been a battlefield for multinational dairy enterprises due to the market vacuum.

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Market Research Report on Chinese Dairy Product Industry, 2008-2010

Table of Contents
Table of Contents Chapter1 Overviews on China’s Dairy Product Industry 1.1 Related Concepts 1.1.1 Definitions of Dairy Products 1.1.2 Classifications of Dairy Products 1.1.3 Analysis of the Dairy Product Industry Chain 1.2 The Position of the Dairy Product Industry in the National Economy 1.2.1 Profiles of the Whole Dairy Product Industry 1.2.2 Analysis of the Operations of China’s Dairy Product Industry from 2006 to 2007

Chapter 2 Analysis of the Supplies of China’s Dairy Product Industry 2.1 Analysis of Overall Supply Situations 2.1.1 Analysis of the Gross Amount 2.1.2 Analysis of the Features of Supply 2.2 Analysis of the Tendency of the Supply of China’s Dairy Product Industry 2.2.1 Analysis of the Upward Tendency of the Production Capacity 2.2.2 Analysis of the Structure of Supply

Chapter 3 Analysis of the Demands of China’s Dairy Product Industry 3.1 Analysis of Overall Demand Situation 3.1.1 Analysis of Total Demand and Consumption Per Capita 3.1.2 Analysis of the Characteristics of Demand 3.1.3 Analysis of the Main Factors of the Consumption of Dairy Products 3.2 Analysis of the Structure of Demand of China’s Dairy Product Industry 3.2.1 Analysis of the Regional Consumption Structure 3.2.2 Analysis of the Brand Structure 3.2.3 Analysis of Consumer Structure 3.3 Analysis of the Tendency of Demand of China’s Dairy Product Industry
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3.3.1 Safety 3.3.2 Localization 3.3.3 Analysis of the Demands of Imported Dairy Products

Chapter 4 Analysis of the Competitions of China’s Dairy Industry 4.1 Analysis of the Characteristics of the Competition 4.1.1 Analysis of the Overall Situation of the Competition on the Market 4.1.2 Analysis of the Competition Structure of the Dairy Product Industry 4.2 Analysis of the Competitive Strategies of China’s Dairy Product Industry 4.2.1 Analysis of the Competitive Strategies of National Enterprises 4.2.2 Analysis of the Competitive Strategies of Regional Enterprises 4.3 Analysis of the Tendency

Chapter 5 Analysis of Sub-industries of China’s Dairy Industry 5.1 Analysis of the Fluid Milk Industry 5.1.1 Analysis of the Factors Affecting the Development 5.1.2 Analysis of the Supply & Demand Situations of China’s Fluid Milk Market 5.1.3 Analysis of the Tendency of the Industry 5.2 Analysis of the Milk Powder Industry 5.2.1 Analysis of the Supply & Demand 5.2.2 Analysis of the Factors Affecting China’s Milk Powder Industry 5.2.3 Analysis of the Tendency the Milk Powder Industry 5.3 Analysis of China’s Cheese Industry 5.3.1 Profiles of the Cheese Industry 5.3.2 Analysis of the Factors Affecting the Cheese Industry 5.3.3 Analysis of the Supply & Demand of the Cheese Industry 5.3.4 Analysis of the Tendency of the Cheese Industry 5.4 Analysis of China’s Cold Drink Industry 5.4.1 Profiles of China’s Cold Drink Industry 5.4.2 Analysis of the Operation Characteristics of the Cold Drink Industry
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Market Research Report on Chinese Dairy Product Industry, 2008-2010

5.4.3 Analysis of the Tendency of the Cold Drink Industry 5.5 Analysis of the School Milk Market 5.5.1 Profiles of the School Milk Market 5.5.2 Analysis of the Factors Affecting the School Milk Market 5.5.3 Analysis of the Tendency of the School Milk Market

Chapter 6 Analysis of Regional Markets of China’s Subdivided Dairy Product Industry 6.1 Overall Analysis of Regional Distribution of China’s Dairy Product Industry 6.1.1 Analysis of the Regional Distribution Characteristics of China’s Dairy Product Industry 6.1.2 Analysis of Features of the Distribution of Dairy Product Outputs 6.1.3 Analysis of the Economic Effectiveness of Different Regions 6.2 Analysis of the Dairy Product Industry of Inner Mongolia 6.2.1 Profiles of the Dairy Product Industry of Inner Mongolia 6.2.2 Analysis of the Operations of the Dairy Product Industry of Inner Mongolia 6.2.3 Analysis of the Developments of the Dairy Product Industry of Inner Mongolia 6.3 Analysis of the Dairy Product Industry of Hebei 6.4 Analysis of the Dairy Product Industry of Heilongjiang 6.5 Analysis of the Dairy Product Industry of Shandong 6.6 Analysis of the Dairy Product Industry of Shanghai

Chapter 7 Analysis of the Major Enterprises of China’s Dairy Product Industry 7.1 Mengniu Group of Inner Mongolia 7.1.1 Profile of the Enterprise 7.1.2 Position in the Industry 7.1.3 Analysis of the Operations 7.1.4 Analysis of the Prospect 7.2 Yili Group of Inner Mongolia 7.2.1 Profile of the Enterprise 7.2.2 Position in the Industry 7.2.3 Analysis of the Operations
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7.2.4 Analysis of the Prospect 7.3 Shanghai Bright Dairy Group 7.4 Beijing Sanyuan Dairy Group 7.5. Nestle Shuangcheng Ltd. 7.6 Heilongjiang Wondersun Dairy Co.Ltd. 7.7 Guangdong Yashili Group Co.Ltd.

Chapter 8 Analysis of Mergers and Acquisitions of China’s Dairy Product Industry 8.1 The Status Quo of Mergers and Acquisitions 8.2 Case Study of Mergers and Acquisitions

Chapter 9 Analysis of Investment in China’s Dairy Product Industry 9.1 Analysis of Investment Risks 9.1.1 Economic Risks 9.1.2 Market Risks 9.1.3 Other Risks 9.1.4 Recommendations on Risk Aversion 9.2 Analysis of the Investment Opportunities 9.2.1 Market Opportunities 9.2.2 Other Opportunities 9.2.3 Recommendations on Investment and Development Selected Charts Chart Analysis of Chinese dairy product industry chain Chart The fluid milk consumption of Chinese urban residents per capita Chart The outputs of Chinese dairy products, 2003-2007 Chart The market scale of Chinese dairy product market, 2003-2008 Chart The outputs of Chinese milk, 2003-2007 Chart Dairy product outputs of Inner Mongolia, 2003-2007 Chart Dairy product outputs of Hebei, 2003-2007

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Market Research Report on Chinese Dairy Product Industry, 2008-2010

Chart Dairy product outputs of Shandong, 2003-2007 Chart Dairy product outputs of Shanghai, 2003-2007 Chart Statistics of expansions of production capacities of Yili and Mengniu, 2005-2008 Chart The dairy product consumption of Chinese urban residents per capita Chart Analysis of purchasing prices of original milk in China, 2003-2008 Chart Analysis of the cost structure of dairy products Chart Analysis of the proportions of milk powder consuming groups Chart Analysis of the policies in Chinese dairy product industry Chart General views on global Milk powder incidents in recent years Chart Analysis of the imports & exports of Chinese dairy products Chart The scales of Chinese Infant formula market, 2003-2007 Chart Forecast on scales of Chinese Infant formula market, 2008-2012

Companies Mentioned
Mengniu Group of Inner Mongolia Yili Group of Inner Mongolia Shanghai Bright Dairy Group Beijing Sanyuan Dairy Group Nestle Shuangcheng Ltd. Heilongjiang Wondersun Dairy Co.Ltd. Guangdong Yashili Group Co.Ltd.

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