Abstract
Research Background and Purpose
Milk powder was the most important dairy product before the early half of
1990s. However, as Tetra Pak' s aseptic filing products powering into Chinese
dairy industry, UHT milk keeps a sustainable and speeding development with an
annual average increasing rate of 89.37% between 1999 and 2004.
Thus, it promotes consumption pattern of Chinese dairy market to liquid milk
as the main part from milk powder as the main part. Currently liquid milk
takes up an absolutely main part of Chinese residents' dairy consumption,
e.g., per capita dairy consumption of Chinese urban residents was 22.54
kilograms, in which liquid milk amounted to 22.04 kg (fresh liquid dairy
products were 18.32 kg, and yogurt was 3.72 kg), and milk powder was only 0.50
kg.
In China, milk powder is usually divided into two categories by insiders, one
category is packet milk powder which directly faces terminal market and takes
up 60% of total amount of milk powder estimated by BOABC; while the other is
industrial milk powder which is usually called big package milk powder and
takes up 40% of the total amount in 2006. Industrial milk powder is compared
with packet milk powder on terminal market, so there is no substantial
difference between them. Because industrial milk powder is usually used as
important raw material of dairy products (e.g., milk formula, restituted milk,
yogurt, ice cream, etc.) and dairy food (e.g., bread, cake, biscuit, milk
chocolate, dairy drinks, etc.), it is lower than packet milk powder in many
aspects---deep-processing degree, technological level, packing form, packing
material and so on.
According to China Dairy Industry Association, currently milk powder is the
most important solid dairy product, which takes up more than 86% share of
Chinese solid dairy products. There are several hundred milk powder processing
enterprises on Chinese market with different scales and standards. In 2004,
there were only 30 safe milk powder enterprises published by the State Bureau
of Quality Supervision, which was less than one tenth of the total number. The
concentration ratio of milk powder market is much lower than liquid milk
market. In 2006, the production of the ten largest Chinese milk powder
processing enterprises approximately takes up 53% of total amount of milk
powder estimated by BOABC. A lot of changes happened to milk powder market.
The Fuyang Inferior Quality Milk Powder Event in 2004 reduced the development
of milk powder market that year. In the first half year of 2005, the event of
exceed stipulated content of iodine of Nestle infants' milk powder had a bad
effect on Nestlé' s brand image and market sale. So it is still
difficult to say how the milk powder market will make for.
At present, Chinese milk powder market presents increasing international
characteristics. With the decline of import duty China keeps an interacted
relation with major world trade economies, e.g., China is the second largest
market for New Zealand exports, next to the US and the largest milk powder
export market; China is one of the most important whey product markets for the
US; EU is the most important supplier of non-fat milk powder and whey product
for China. From this year, some related dairy policies and producing
conditions happened in Oceania, the US and EU changed a lot, which has had or
will have great influence on the imports of dairy products, including milk
powder in China. From the perspective of export, Chinese milk powder export
will have new opportunities, e.g., China entered free trade convention with
the ASEAN with no duties on milk powder export to Southeastern Asia countries;
China also reached free trade agreement with Chile, enjoying preferential
policies on milk powder export. In addition, due to the reduction of milk
powder production and supply capacity in major export areas, the traditional
markets provide a chance for Chinese milk powder export. However, in recent
years, the RMB stayed firm against the dollar, which brought certain negative
effect on China milk powder trade.
However, up till now, there has not a special research report of milk powder
market in China. This report will do an overview analysis on China milk powder
market h on the following issues: analysis of raw milk supply, production and
consumption of dairy products and milk powder, import and export of milk
powder, supply and demand of milk powder environment of international market,
policy environment of Chinese milk powder market, marketing environment of
Chinese milk powder market, competition environment of Chinese milk powder
market, etc. This report will forecast the trend of Chinese milk powder
market. This report contains full and accurate cited statistics in recent
years, in which there is especially much deeper division of milk powder
statistics of the year 2006. Statistic resource in this report is
authoritative, which includes first hand statistics gained from in-depth
interviews with milk powder processing enterprises and sellers, and second
hand statistics, e.g., China Custom, China Dairy Industry Association, Dairy
Association of China, National Statistic Bureau, Ministry of Agriculture, All
China Commercial Information Center, American Agriculture Ministry, FAO and so
on. It is hoped that this report---as the first special research report of
milk powder in China will help you in your work.
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