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Report of Chinese Dairy Product Industry under International Financial Crisis, 2009
China Research & Intelligence, March 2009, Pages: 80
Description
In 2008, the total yields of Chinese dairy products were 18.106 million tons, up by 1.3% of last year. The sales volumes held the line with last year. The sales revenues reduced by 5% and export revenues by 10%.
During 2003-2007, Chinese dairy industry developed fast and the product structures changed a lot. Dairy industry has been the leader in Chinese food manufactures, with the growth rates of annual production and sales revenues over 10%.
But in 2008, Chinese dairy industry was seriously stroke from home and abroad, showing declines.
First, from September of 2008, the exposure of melamine event led to serious influences on Chinese dairy product industry. Sanlu, as the core of event, was bankrupted. The sales of enterprises involved in the event reduced. The event made Chinese consumers worry about the safety of domestic dairy products, which persisted to present.
Second, the international financial crisis seriously affected Chinese dairy product industry
On February, 2009, Chinese government issued the Adjustment and Revitalization Plans of Light Industry, including the supports in dairy product industry, which mainly lied in the following: strengthening Chinese food safety, improving entry conditions, perfecting recall and delist systems and strengthening the punishment of manufacturing and marketing of counterfeit and substandard goods and etc.
Chinese dairy product industry, suffered from the doubles blows, however, did not cut down as a whole. There were many reasons for that. On the one hand, the demands for dairy products were irreplaceable for Chinese students, the olds and babies etc. Meanwhile, the occurrence of melamine event made Chinese consumers doubt the national dairy products, but the enterprises took different measures to reverse the consumers` confidence. Also, some regional enterprises began to construct or expand so as to occupy the market. The foreign funded enterprises intensified their distribution in Chinese market. Nestlé, Danone and so on, quickened their expansions in Chinese dairy product market. Some foreign funded enterprises in other food industry began to entered Chinese dairy product market. The market blank was quickly filled by Chinese regional dairy enterprises and foreign funded enterprises.
Under the circumstances of international financial crisis, it is predicted that Chinese dairy product industry will still keep annual growth speed of 2-3% in 2009 to 2010. There were still opportunities of mergers and acquisitions and technology reform etc. Import products can be developed in medium and high quality market.
The analysts of our company made a profound investigation into Chinese dairy product industry and the enterprises by interviews with the purposes of giving the international and domestic dairy product enterprises some recommendations to tide over and cope with the challenges of international financial crisis through discovering opportunities in Chinese market.
Here we are extremely grateful for the valuable references and suggestions from Dr. Steven. Wong.
Readers can obtain more following information:
-Production and Development Trends of Chinese Dairy Product Industry
-Demands and Development Trends of Chinese Dairy Product Industry
- Imports and Exports and Development Trends of Chinese Dairy Product Industry
- Favorable Factors for the Development of Chinese Dairy Product Industry
- Unfavorable Factors for the Development of Chinese Dairy Product Industry
- Influences of Melamine Event on Chinese Dairy Product Industry
- Influences of International Financial Crisis on Chinese Dairy Product Industry
- Operations and Development Trends of Major Local Enterprises in Chinese Dairy Product Industry under International Financial Crisis
- Operations and Development Trends of Major Foreign Funded Enterprises in Chinese Dairy Product Industry under International Financial Crisis
-Short, Medium and Long Term Influences of Adjustment and Revitalization Plans of Light Industry on Chinese Dairy Product Industry
- Subsistent Opportunities for Chinese Dairy Product Industry under International Financial Crisis
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