China Dairy Industry Research Report 2014-2018 in New Research Report at ChinaMarketResearchReports.com

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In 2013 China imported 1,827 thousand tons of dairy products that worth USD 7,147 million.

Dallas, TX (PRWEB) April 01, 2014

Demand for dairy products keeps increasing as Chinese economy develops and people's lifestyle changes.

In 2013 there were more than 600 dairy producers in China. The revenue of main business was approximately CNY 280 billion, up by 14% YOY. The output volume of dairy products was 26.98 million tons, up by 6% YOY. Sales of the product also went up in recent years while the finished goods inventory fell drastically. By the end of December, total value of the finished goods inventory in the whole industry was CNY 6.38 billion, down by 7.47% YOY. It equals to the value of 610 thousand tons of products, which takes only 2.3% of the total output volume. It is indicated that the product is very popular in the market.

Although dairy industry in China performed well in production and selling in 2013, economic benefit did not grow at the same pace. Total profit and tax of the industry increased by 5.83% YOY while total profit only increased by 3.76% YOY. The reason is that profit brought by increase of sales revenue is offset by increase of raw material cost. China is now one of the countries with high milk price. The Ministry of Agriculture monitors the average price of raw milk in ten major milk producing areas such as Inner Mongolia and Hebei. In November 2013 the average price of raw milk was 4.03 CNY/kg while that in January 2014 was 4.26 CNY/kg, up by 24.9% YOY. In November 2013, the weighted average price of milk in 28 countries in EU was 39.98 EUR/100kg, which was 3.35 CNY/kg by the exchange rate in the month. The weighted average price of milk in Germany, France, England, Holland and Poland was 39.75 EUR/100kg, which was 3.33 CNY/kg. Overall the purchasing price of raw milk in China is 1/3 higher than the international level. Highpriced milk becomes a key factor that hinders the growth of dairy product consumption in China.

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Due to frequent food safety incidents in the last few years, dairy industry in China is going through rectification and reform. Chinese government has issued a series of policies to regulate and guide the production, import and export, and selling of dairy products since 2013.

Liquid milk product is one of the well developed areas among various segments of dairy products in China. It has high output and sales volume as well as large market size. In 2013 the output volume of liquid milk in China was 23.36 million tons, up by 7% YOY. Most market share is occupied by domestic enterprises such as Yili, Mengniu and Bright Dairy. Few liquid milk products in Chinese market are produced inside China by foreign funded enterprises. This means less challenge from foreign funded enterprises to domestic enterprises in the liquid milk industry. Most foreign funded and imported brands are in the milk powder field. In China, market size of other dairy products such as cheese is still small and in the initial development stage.

In recent years, more Chinese consumers choose imported dairy products due to frequent dairy product safety incidents. Parents of infants start to purchase imported milk powder. Import of dairy products in China grew rapidly in 2013 while the export remained the same. In 2013 China imported 1,827 thousand tons of dairy products that worth USD 7,147 million. The two numbers increased by 36.24% and 52.91% YOY respectively. Value of imported dairy products took 15.6% of the sales revenue of domestic dairy products. Among the imported dairy products, there are 854 thousand tons of milk power (up by 49.08% YOY), 434 thousand tons of whey powder (up by 14.72% YOY), 83.5 thousand tons of milk sugar (up by 4.67% YOY) and 123 thousand tons of infant milk powder (up by 34.23% YOY). In particular, import volume of liquid milk was 185 thousand tons which increased by 96.80% YOY. Export volume of dairy products was 39 thousand tons that worth USD 81 million, which decreased by 21.89% and 27.62% respectively. Based on the above situation, imported dairy product has become an indispensable part of Chinese dairy industry.

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The rapid growth of dairy product import in China is caused by low confidence due to frequent safety incidents of homemade dairy products and by the increasing price of domestic raw milk.

Demand for dairy products as well as imported dairy products in Chinese market will keep increasing as Chinese economy develops and per capita income increases, leading to a higher position of China in global market.

Browse more reports on Food & Beverage Industry at http://www.chinamarketresearchreports.com/cat/food-beverage.html.

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