Research Report on Supply&Demand of Milk Powder and Market Competition in China

Date: August 22, 2011
Pages: 100
Price:
US$ 6,000.00
Publisher: Beijing Orient Agribusiness Consultant Co., Ltd
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: R9A99A4729EEN
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Research Report on Supply&Demand of Milk Powder and Market Competition in China
Background

Before the mid-1990s, milk powder was the main dairy products in China, at that time formula were mainly foreign brands, while domestic products were mainly whole milk powder and whole sweet milk powder. However, with the infiltration of aseptic filling products of TetraPack,UHT milk got a fast development in China after the mid-1990s, promoting the consumption structure of dairy products in China shifted from milk powder as major dairy products to liquid milk as major. Currently, liquid milk accounts for the vast majority of dairy product consumption of Chinese inhabitants, while milk powder consumption also sees great changes from all the people to special class such as infants, pregnant women and quinquagenarians, from ordinary whole milk powder and whole sweet milk powder to formula. Infant formula accounts for larger proportion in the milk powder in terminal market, has been a focus that domestic and foreign milk powder enterprises pursues.

In China, according to applications, milk powder is classified to two types; the one is small packing milk powder, facing terminal market directly and accounting for 65-70% of total milk powder. As milk powder processing includes dry blend and wet process, certain part of small packing milk powder is transformed from big packing ones; the other one is industrial milk powder, including whole milk powder and skim milk powder. According to BOABC, industrial milk powder accounts for 30-35% of the total milk powder, if take the part used in small packing milk powder processing into consideration, that output of industrial milk powder in China occupies more than 80% of the total quantity of milk powder. In recent years, the cost performance of domestic skim milk powder is obviously lower than the foreign ones, so domestic products were gradually replaced by imported skim milk powder. Now the proportion of domestic skim milk powder in milk powder is less than 3%. Generally, industrial milk powder is one important ingredient of dairy products (such as formula, raw milk, yoghourt and ice cream) and milk foods (such as bread, cake, biscuit, milk chocolate and milk beverage).

Now, as quality and safety scandals of milk powder in Chinese market happen occasionally, especially after the exposure of melamine event in September, 2008, dairy products (including milk powder) enterprises become the key supervised entities of government. According to the statistics of AQSIQ from local quality supervision departments, by March, 31, 2011, in 1176 dairy products enterprises (include 145 infant formula companies) in China, 643 enterprises of them have passed the re-examination of Production Permission (include 114 infant formula companies and 170 whole milk powder enterprises), 107 companies have been suspend operation pending consolidation, 426 enterprises haven’t passed the examination. Compared with liquid milk, the concentration of milk powder market in China is much lower. According to BOABC, now the production of the top ten milk powder enterprises in China accounts for 60% of the total output of our country.

Now, the international characteristics of Chinese milk powder market are increasingly prominent. With the reduction of tariff, the relationship between China and major world trade economies is closer growingly, for example China has become the second largest market after US for New Zealand exports and the largest export market of milk powder. China is one of the most important export markets of American whey products, at the same time EU is one of the most important suppliers of skim milk powder and whey products for China. In recent years, relevant policies and productions of dairy products went through some significant changes in the Oceanian countries, EU and United State. Droughts in Oceanian countries led to the reduction of raw-milk output, so the production and exports of milk powder also decreased. EU canceled production subsidy and export subsidy of milk powder and butter, resulting in the decrease of milk powder production profit, which has impacts on the production and export of milk powder in EU. In addition, EU and United State preferred cheese/whey to milk powder/ butter, all these factors resulted in the shoring price of milk powder in recent years, especially the price of whole milk powder. Milk powder, particularly whole milk powder is the ingredient of many dairy products and milk foods, and wildly used in food processing industry, the shortage of milk powder supply arouses the wild concern of the industry in domestic. According to the tracking investigation of BOABC, quite a few listed dairy product companies in China in recent years are milk powder enterprises such as Feihe, Beingmate, ASHLY, Ausnutria and Global Dairy, China added 1 billion yuan investment on milk powder industry with a capacity of 100,000MT. In export, since 2010, milk powder export in China has seen recovery increase and signed free trade agreement with “ASEAN” who applied zero tariff treatment to milk powder exported to Southeast Asian Nations;

China has reached free trade agreement with Chile, and milk powder exported to Chile also enjoyed preferential policy. In addition, affected by weather, the supply ability of raw-milk of Oceanian countries decreased, which influenced the production and supply of these two nations, leading to the insufficiency in traditional market. Chinese milk powder export is expected to keep recovery growth. Of course, the sustained strong RMB exchange rate against USD also had some adverse impacts on China’s milk powder trade. In short, the market environment of domestic milk powder industry saw great changes, had or will have far-reaching influence on the development of the industry.

BOABC and dairy products analysts have been engaged in domestic and international research on dairy industry for many years, and provided consultation services for related departments of the government, foreign institutions in China, multinational companies and domestic large-medium enterprises, enjoyed a higher popularity in the industry. So far, system special research on Chinese milk powder market is a black in China. The report makes panoramic analysis on Chinese milk powder market, including the supply of raw milk, production and consumption of dairy products and milk powder, import and export trade, supply and demand environment of world milk powder market, policy environment of China’s milk powder market, marketing environment and competition environment, and forecast of the development trend of the market. The data cited in the report is full and accurate, involving the historical data of many years. The report makes particular analysis on the data since the melamine event. The data of the report is authoritative, including the first hand information from our interview on milk powder processing enterprises and dealers and second hand data from China Customs, China dairy industry association, Dairy Association of China, State Statistics Bureau, the Ministry of Agriculture, CNCIC, United States Department of Agriculture and FAO. We hold that the research report is a valuable reference for the enterprises and institutions which pay close attention to China’s milk powder market.
1. OVERVIEW OF MILK POWDER MARKET IN CHINA

1.1. Milk And Dairy Product Production
1.2. Consumption Of Dairy Product
1.3. Trade Of Dairy Product
  1.3.1. Import
  1.3.2. Export
1.4. Competition
1.5. Policy And Supervision

2. ANALYSIS OF THE OVERALL SITUATION OF DAIRY PRODUCT MARKET IN CHINA

2.1. Analysis Of Raw Milk Supply In China
  2.1.1. Inventory Of Dairy Cattle
  2.1.2. Milk Output
  2.1.3. Areal Distribution Of Milk Source
  2.1.4. Distribution Characteristics Of Milk Source In China
  2.1.5. Purchasing Price Of Raw Milk
2.2. Analysis Of The Production Of Dairy Product In China
  2.2.1. Liquid Milk
  2.2.2. Solid Dairy Products
  2.2.3. Whole Milk Powder
  2.2.4. Skim Milk Powder
  2.2.5. Infant Formula
  2.2.6. Other Milk Powders
  2.2.7. Analysis Of The Impacts Of Melamine Event On Milk Powder Industry
2.3. Analysis Of Dairy Product Consumption In China
  2.3.1. Analysis Of The Overall Consumption Situation
  2.3.2. Consumption Structure Of Dairy Product
  2.3.3. Regional Disparity Of Dairy Product Consumption
  2.3.4. Consumption Price Of Dairy Product
2.4. Analysis Of Import & Export Trade Of Dairy Product In China
  2.4.1. Overall Trend Of Import & Export Of Dairy Product
  2.4.2. Import Trend Of Various Dairy Products
  2.4.3. Analysis Of Major Import Origins
  2.4.4. Main Flow Directions Of Imported Dairy Product
  2.4.5. Export Structure
  2.4.6. Export Destinations Of Chinese Milk Powder
  2.4.7. Export Provinces Of Chinese Milk Powder
  2.4.8. Export &Import Trade Of Milk Powder In China

3. ANALYSIS OF SUPPLY & DEMAND ENVIRONMENT OF WORLD MILK POWDER MARKET

3.1. Analysis Of The Overall Supply & Demand Environment
  3.1.1. Demand Analysis Of World Dairy Product
  3.1.2. Supply Analysis Of World Dairy Product
  3.1.3. Analysis Of Milk Powder Price In World Market
3.2. Analysis Of Supply & Demand Of Milk Powder In Major Economic Entities
  3.2.1. Analysis Of Supply & Demand Of Milk Powder In New Zealand
  3.2.2. Analysis Of Supply & Demand Of Milk Powder In Australia
  3.2.3. Analysis Of Supply & Demand Of Milk Powder In EU
  3.2.4. Analysis Of Milk Powder Production Trend In US

4. ANALYSIS OF POLICY ENVIRONMENT OF MILK POWDER MARKET IN CHINA

4.1. Existing Relevant Standards Of Milk Powder
4.2. Production Permit System Of Infant Formula In China
4.3. Analysis Of Policy Environment Of Milk Powder Market In China
4.4. Market Supervision System Of Dairy Product Market In China
4.5. “Reconstituted Milk” Labeling Rule
4.6. “Sole Rectification” Of Infant Formula Market In China
4.7. Sales Management Methods Of Breast Milk Substitutes

5. ANALYSIS OF THE MARKETING ENVIRONMENT OF MILK POWDER IN CHINA

5.1. Capacity Of Milk Powder Market In China
5.2. Characteristics Of Milk Powder Market In Cities And Towns In China
5.3. Analysis Of Milk Powder Cost And Final Price
5.4. Marketing Channel Of Milk Powder

6. ANALYSIS OF COMPETITION ENVIRONMENT OF MILK POWDER IN CHINA

6.1Competitive Enterprises
  6.1.1. Analysis Of Listed Milk Powder Enterprises
6.2. Analysis Of The Competition Of Top Ten Milk Powder Enterprises
  6.2.1. Investment Analysis
  6.2.2. Output Analysis
  6.2.3. Analysis Of Product Structure
  6.2.4. Analysis Of Operation Profit
  6.2.5. Analysis Of Market Share

7. OVERVIEW OF INDUSTRIAL MILK POWDER MARKET IN CHINA

7.1. Analysis Of Supply & Demand Of Industrial Milk Powder Market
  7.1.1. Supply
  7.1.2. Demand
7.2. Distribution Of Producing Regions

8. FUTURE TREND AND INFLUENTIAL FACTORS OF MILK POWDER MARKET IN CHINA

8.1. Milk Powder Production
  8.1.1. Maintaining Fast Growth
  8.1.2. Changes Of Milk Powder Structure, Formula Keep Larger Proportion, Industrial Milk Powder Proportion Decrease
8.2. Milk Powder Consumption
  8.2.1. Market Price Of Milk Powder Will Run At A High Level
  8.2.2. Per Capita Consumption Of Small Packing Milk Powder Will Not Increase Obviously, But Industrial Powder Milk Consumption Will See Great Growth
  8.2.3. Market Below The County Level Will Continue To Be The Key Market Of Milk Powder Consumption, Especially In The South
8.3. Milk Powder Trade
  8.3.1. Import Price Will Keep Strong, Import Volume Will Keep Stable With Slight Growth
  8.3.2. Oceanian Countries Are The Major Nations From Where China Import Milk Powder, While Import Volume From Other Countries Will Increase
  8.3.3. Export Of Domestic Milk Powder Will See Recovery Growth
  8.3.4. Trade Deficit Of Milk Powder Will Be Enlarged
8.4. Competitive Strategy Of Milk Powder Market
  8.4.1. Strategic Alliances Between China And International Milk Powder Tycoon Is An Important Means
  8.4.2. S
  8.4.3. Permeating The Three And Four Level Market Is An Important Way Of Expanding Market Share
  8.4.4. Enhance Research On The Demand Of International Milk Powder Market, Start Or Enlarge Export Will Be The Important Method Of Domestic Brand To Expand Market

ATTACHED SHEET

Appendix 1, Balance Sheet Of Milk In China, 2009-2011
Appendix 2, Balance Sheet Of Whole Milk Powder In China, 2009-2011
Appendix 3, Balance Sheet Of Skim Milk Powder In China, 2009-2011
Appendix 4, List Of Whole Milk Powder Enterprises In China (Approved In 2011)
Appendix 5, List Of Skim Milk Powder Enterprises In China (Approved In 2011)
Appendix 6, List Of Infant Formula Enterprises In China (Approved In 2011)

FIGURE

Figure 2.1, Growth Trend Of Dairy Cattle Inventory In China, 1995-2010
Figure 2.2, Growth Trend Of Milk Production In China, 1995-2010
Figure 2.3, Growth Trend Of Milk Production In Major Producing Regions, 2010
Figure 2.4, National Position Of Milk Production Of Major Producing Regions, 2010
Figure 2.5, Price Change Trend Of Raw Milk In China, 2008-2011
Figure 2.6, Purchasing Scale Of Raw Milk Of Major Dairy Product Enterprises In China, 2009-2010
Figure 2.7, Growth Trend Of Liquid Milk Production In China, 1998-2011
Figure 2.8, Growth Trend Of Liquid Milk Production In Provinces, 2010
Figure 2.9, Proportion Of Liquid Milk Production Of Milk Source Producing Areas, 2010
Figure 2.10, Growth Trend Of The Production Of Various Liquid Milks In China, 1999-2010
Figure 2.11, Category Structure Change Of Liquid Milk In China, 1999-2010
Figure 2.12, Production Of Solid Dairy Products In China, 1998-2010
Figure 2.13, Production Of Solid Milk In Different Provinces, 2010
Figure 2.14, Proportions Of Solid Dairy Product By Producing Region (By Production), 2010
Figure 2.15, Growth Trend Of Milk Powder Production, 1990-2006
Figure 2.16, Growth Trend Of Whole Milk Powder Production, 2000-2010
Figure 2.17, Growth Trend Of Skim Milk Powder Production, 2000-2010
Figure 2.18, Growth Trend Of Infant Formula Production, 2000-2010
Figure 2.19, Status Of Milk Powder In Solid Dairy Products, 1999-2010
Figure 2.20, Milk Powder Production (Quantity) Structure In China, 1999-2006
Table 2.2, Dairy Product Consumption Of Inhabitant In Cities And Towns, 2010
Figure 2.21, Monthly Per Capita Dairy Product Consumption Of Inhabitant In Cities And Towns, 2010
Figure 2.22, Per Capita Consumption Of Various Dairy Product Of Inhabitant In Cities And Towns, 2002-2010
Figure 2.23 Per Capita Dairy Product Consumption Structure Of Inhabitant In Cities And Towns (By Quantity), 2002-2010
Figure 2.24 Per Capita Dairy Product Consumption Structure Of Inhabitant In Cities And Towns (By Money), 2010
Figure 2.25 Per Capita Fresh Milk Consumption Of Inhabitant In Cities And Towns Of Different Provinces, 2010
Figure 2.26 Per Capita Yoghourt Consumption Of Inhabitant In Cities And Towns Of Different Provinces, 2010
Figure 2.27 Per Capita Milk Powder Consumption Of Inhabitant In Cities And Towns Of Different Provinces, 2010
Figure 2.28, Monthly Retail Price Trend Of Fresh Milk In Cities And Towns, 2006-2010
Figure 2.29, Monthly Retail Price Trend Of Milk Powder In Cities And Towns, 2006-2010
Figure 2.30, Import Trend Of Dairy Product In China, 2004-2010
Figure 2.31, Import Structure (Quantity) Of Dairy Product, 2003-2010
Figure 2.32, Monthly Import Trend Of Dairy Product By Category, 2004-2011
Table 2.4, Export Of Dairy Product In China, 2008-2011
Figure 2.35, Classification Of Import Milk Powder
Figure 2.36, Application Of Import Milk Powder In China, 2002-2010
Figure 2.37, Monthly Import Trend Of Milk Powder In China, 2002-2011
Figure 2.38, Monthly Import Trend Of Skim Milk Powder In China, 2002-2011
Figure 2.39, Monthly Import Trend Of Whole Milk Powder In China, 2002-2011
Figure 2.40, Monthly Import Trend Of Infant Formula In China, 2002-2011
Figure 2.41, Monthly Trend Of Imported Milk Powder Structure In China, 2002-2011
Figure 2.42, Yearly Trend Of Imported Milk Powder Structure (Quantity) In China, 2002-2011
Figure 2.43, The Position Of Imported Milk Powder From New Zealand In China’s Imported Milk Powder
Figure 2.44, Structure Of Imported Milk Powder (Quantity) From New Zealand, 2007-2011
Figure 2.45, Distribution Of Origin Of Imported Skim Milk Powder, 2011
Figure 2.46, The Proportion Of Imported Infant Formula Of Different Origins In China’s Total Imported Milk Powder, 2007-2011
Figure 2.47, Import Trend Of Skim Milk Powder In Major Provinces In China, 2009-2011
Figure 2.48, Main Flow Direction Of Imported Skim Milk Powder In China, 2010
Figure 2.49, Import Trend Of Whole Milk Powder (Without Sugar) In Major Provinces, 2009-2010
Figure 2.50, Major Flow Direction Of Imported Whole Milk Powder (Without Sugar) (Quantity) In China, 2010
Figure 2.51, Import Trend Of Whole Milk Powder (With Sugar) In Major Provinces, 2009-2010
Figure 2.52, Major Flow Direction Of Imported Whole Milk Powder (With Sugar) (Quantity) In China, 2010
Figure 2.53, Average CIF China Of Milk Powder, 2002-2011
Figure 2.54, Average CIF China Of Skim Milk Powder, 2002-2011
Figure 2.55, Average CIF China Of Whole Milk Powder, 2002-2011
Figure 2.57, CIF China Of Infant Formula, 2002-2011
Figure 2.58, Monthly CIF China Of Milk Powder From New Zealand, 2002-2011
Table 2.5, Market Share Of Imported Skim Milk Powder By Origins In China, 2010
Figure 2.59, Monthly CIF China Of Skim Milk Powder From Other Key Countries, 2010
Table 2.6, Analysis Of Milk Powder Import Of Key Manufacturing Enterprises In China
Figure 3.1 Quantities Of Different Dairy Products In World Trade, 2000-2010
Figure 3.2, Export Pattern Of The 27 Countries Of EU, 2005-2010
Figure 3.3, Market Share Of Dairy Product Export Around The World, 2000-2010
Figure 3.4, Price Trend Of Skim Milk Powder Around The World, 2000-2011
Figure 3.5, Price Trend Of Whole Milk Powder Around The World, 2000-2011
Table 3.1, Balance Sheet Of Skim Milk Powder In New Zealand, 2009-2011
Table 3.2, Balance Sheet Of Whole Milk Powder In New Zealand, 2009-2011
Figure 3.8, Production And Export Volume Of Whole Milk Powder In Australia, 1996/97-2009/10
Figure 3.9, Production And Export Volume Of Whole Milk Powder In Australia, 1996/97-2009/10
Table 3.3, Balance Sheet Of Skim Milk Powder In Australia, 2009-2011
Table 3.4, Balance Sheet Of Whole Milk Powder In Australia, 2009-2011
Figure 3.10, Production Of Raw Milk And Dairy Product In EU, 2009-2010
Table 3.5, Balance Sheet Of Skim Milk Powder In EU, 2009-2011
Table 3.6, Balance Sheet Of Whole Milk Powder In EU, 2009-2011
Figure 3.11, Monthly Production Trend Of Skim Milk Powder (Edible Level) In US, 2005-2011
Figure 3.12, Price Trend Of Skim Milk Powder In US, 2005-2011
Figure 3.13, Monthly Production Trend Of Whey Milk Powder In US, 2005-2011
Figure 3.14, Price Trend Of Whey Milk Powder In US, 2005-2011
Figure 5.1, Process Comparison Among Famous Milk Powder Brand Enterprises, 2010
Figure 5.2, Comparison Of Terminal Retail Price Of Milk Powder Among Some Domestic Brands And International Brands, 2010
Figure 5.3, Marketing Channel Of Domestic Milk Powder
Figure 6.1, General Administration For Quality Supervision Grants Infant Formula Production License And Areal Distribution Of Product Quantity, 2011
Table 6.1, List Of Milk Powder Investment Of Some Enterprises In China
Figure 6.2, Production Growth Trend Of Top 10 Milk Powder Enterprises In China, 2009-2010
Figure 6.3, Market Share Of Top 10 Milk Powder Enterprises In China, 2010
Figure 6.4, Product Composition Of Top 10 Milk Powder Enterprises In China, 2010
Table 6.2, Profitability Comparison Of Top 10 Milk Powder Enterprises In China, 2010
Figure 6.5, Market Share Change Of Top 10 Infant Formula Enterprises In China, 2008-2010
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