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White Paper on China Dairy (2014)

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White Paper on China Dairy (2014) WHITE PAPER ON CHINA DAIRY (2014) Sponsored by Sino-Dutch Dairy Development Centre Supervisory Board: Ke Bingsheng; Roelof Joosten; Martin Scholten Steer Committee: Toon van Hooijdonk; Kees de Koning Janine Lutine; Atze Schaap; Gordon Yang Jeroen Heck; Dong Renjie; Hu Xiaosong Ren Fazheng Written By Editor in Chief: Li Shengli Deputy Editors in Chief: Liu Kai; Liu Xiao Authors: Alfons Beldman; Bai Junfei; Cao Binbin; Cao Zhijun; Du Wen Fang Xiangming; Guo Huiyuan; Guo Pei; Han Beizhong Hu Dinghuan; Jeroen Heck; Kees de Koning; Li Shengli Lieuwe Montsma; Liu Kai; Liu Xiao; Ren Fazheng Wang Wenxin; Wang Yajing; Xia Jianmin; Yang Hongjian Yao Kun Contents White Paper on China Dairy · 2014 CONTENTS PART I DEVELOPMENT OF THE DAIRY FARMING INDUSTRY IN CHINA CHAPTER 1 DAIRY FARMING INDUSTRY IN CHINA 1 1.1 OVERVIEW 1 1.1.1 Changes of Dairy Cattle Number, Yield and Total Milk Output 1 1.1.2 Main Breeds of Dairy Cattle in China 1 1.1.3 Distribution of Advantageous Regions for Dairy Farming in China 1 1.1.4 Major Types of Dairy Farming in China 4 1.2 CONSTRUCTION OF RAW MILK PRODUCTION LOCATIONS AND IMPROVEMENT OF RAW MILK QUALITY IN CHINA 5 1.2.1 Construction of Raw Milk Production Locations in China 5 1.2.2 Gradual Improvement in Raw Milk Quality 7 1.3 PROBLEMS REMAIN IN CHINA’S DAIRY FARMING INDUSTRY 7 1.4 DEVELOPMENT TREND OF DAIRY FARMING INDUSTRY IN CHINA 7 1.4.1 Growth trends in dairy cattle 8 1.4.2 Proportion of Large-Scale Farming Continues to Rise 8 1.4.3 The “Combination of Crop Farming and Dairy Farming” Model Will Develop Further 8 CHAPTER 2 TYPICAL CASE REVIEWS FOR MAJOR DAIRY FARMING AREAS IN CHINA 9 2.1 TYPICAL AGRICULTURAL AREA: CHANGES IN FEEDING METHODS IN SHUANGCHENG CITY, HEILONGJIANG PROVINCE 9 2.1.1 Overview of Dairy Farming in Heilongjiang Province and Shuangcheng City 9 2.1.2 Dairy Farming Mode in Shuangcheng 10 2.1.3 Feed and Forage Resources 11 2.1.4 Farmland Resources 11 2.1.5 Dairy Cattle Breeds and Improvements 11 2.1.6 Labor and Education Level 11 2.1.7 Operating Effectiveness Analysis 12 2.1.8 Raw Milk Purchasing Policy and Pricing System 12 2.1.9 Main Problems and Future Trends 14 2.2 OVERVIEW OF COOPERATIVE DAIRY FARMS AND TREND ANALYSIS IN HEBEI PROVINCE 14 2.2.1 Overview of Dairy Conditions in Hebei Province 14 i White Paper on China Dairy · 2014 Contents 2.2.2 Development Process of Cooperative Dairy Farms in Hebei Province 16 2.2.3 Overview of Production and Management in Cooperative Dairy Farms in Hebei 16 Province 2.2.4 Main Problems and Future Trends among Cooperative Dairy Farms in Hebei Province 20 2.3 SUBURBAN AREAS - CHANGES IN BEIJING/TIANJIN DAIRY FARMING MODELS 21 2.3.1 Overview of Dairy Farming in Beijing/Tianjin 22 2.3.2 Industry Needs Analysis 24 2.3.3 Analysis of Operating Performance 26 2.3.4 Main Constraints 27 2.3.5 Future Trends 28 2.4 GENERAL SITUATION AND DEVELOPMENT TREND ANALYSIS OF HOUSEHOLD PASTURE DAIRY FARMING IN HULUNBEIER LEAGUE 30 2.4.1 Present Situation and Development Trend of Dairy Farming Industry in Inner Mongolia Autonomous Region 30 2.4.2 Production and Operation of Ecological Household Pasture Farming in Hulunbeier 32 2.4.3 Constraints for Development of Ecological Household Pasture Farm 36 2.4.4 Support Policy System for Ecological Household Pasture farms 36 2.5 SWOT ANALYSIS OF CHINA DAIRY FARMING INDUSTRY 37 CHAPTER 3 CHINA’S RAW MILK QUALITY CONTROL SYSTEM 39 3.1 THE QUALITY STANDARDS OF RAW MILK IN CHINA 39 3.1.1 National Standard 39 3.1.2 The Enterprise Standard of Raw Milk in China 39 3.2 RAW MILK PRICING SYSTEM IN DIFFERENT BREEDING PATTERNS OF CHINA 39 3.2.1 Raw Milk Pricing System in Large-Scale Intensive Dairy Farms 40 3.2.2 Raw Milk Pricing System for Cooperative Dairy Farms 40 3.2.3 Raw Milk Pricing System in Small-Scale Household Dairy Farms 40 3.3 RAW MILK QUALITY CONTROL SYSTEM FOR DIFFERENT BREEDING PATTERNS IN CHINA 40 3.3.1 Raw Milk Quality Control at Large-scale Intensive Dairy Farms 41 3.3.2 Raw Milk Quality Control in Cooperative Dairy Farms 41 3.3.3 Raw Milk Quality Control at Small-scale Household Dairy Farms 41 3.4 TRENDS IN RAW MILK QUALITY CONTROL SYSTEMS IN CHINA 42 3.4.1 Policy of Continuous Improvement, Strengthening of Raw Milk Supervision 42 3.4.2 Further Improving the Quality and Safety of Raw Milk 42 3.4.3 Exploring the Establishment of a Third-Party Raw Milk Quality Detection Mechanism 42 3.4.4 Establishment of Traceability System for Liquid Milk 43 ii Contents White Paper on China Dairy · 2014 3.4.5 Strengthen Supervision of Infant Milk Powder 43 CHAPTER 4 ANALYSIS OF CHINESE DAIRY POLICY 44 4.1 DAIRY POLICYMAKERS AND IMPLEMENTERS IN CHINA 44 4.2 DIFFERENT DAIRY POLICIES IN CHINA 44 4.2.1 Supportive Policy 44 4.2.2 Restrictive Policy 44 4.2.3 Punishment Policy 45 4.3 DAIRY POLICY ADVANCING WITH TIMES 45 4.3.1 Early Stages of Dairy Policy (1949 - end of 1990s) 45 4.3.2 Dairy Policy from 2000 to 2007 45 4.3.3 Dairy Policy from 2008 - 2012 46 4.3.4 Dairy Industry Policy in 2013 49 4.3.5 Suggestions for Dairy Policy 50 PART II DEVELOPMENT OF DAIRY INDUSTRY IN CHINA CHAPTER 5 CHINESE DAIRY INDUSTRY 51 5.1 GENERAL OUTLOOK FOR THE CHINESE DAIRY INDUSTRY 51 5.2 REGIONAL DISTRIBUTION OF THE CHINESE DAIRY PROCESSING INDUSTRY 51 5.2.1 Northeast China and Inner Mongolia District 51 5.2.2 North China District 51 5.2.3 The northwest District 52 5.2.4 The Southern District 52 5.2.5 The Suburban District 52 5.3 DAIRY PROCESSING AND TECHNICAL APPLICATION 53 5.3.1 Liquid Milk 53 5.3.2 Milk Powder 53 5.3.3 Cheese 54 5.3.4 Yogurt 55 CHAPTER 6 INTRODUCTION TO KEY DAIRY PRODUCT ENTERPRISES 56 6.1 BEIJING SANYUAN FOODS COMPANY LIMITED 56 6.1.1 Products and Production of the Enterprise 57 6.1.2 Main Products and the Application of Key Technologies 58 6.1.3 Enterprise Competitiveness 58 6.2 BRIGHT DAIRY & FOOD CO., LTD. 58 6.2.1 Products and Output Value 58 6.2.2 Main Products and the Application of Key Techniques 59 6.2.3 Enterprise Competitiveness 59 6.3 INNER MONGOLIA YILI GROUP 60 iii White Paper on China Dairy · 2014 Contents 6.3.1 Enterprise Value and Products 60 6.3.2 Key Technologies and Products 60 6.3.3 Enterprise Competitiveness 61 6.4 INNER MONGOLIA MENGNIU DAIRY GROUP 61 6.4.1 Products and Output Value of the Group 61 6.4.2 The Main Products and Application of Key Technologies 61 6.4.3 Enterprise Competitiveness 62 6.5 BEINGMATE 62 6.5.1 Output Value 62 6.5.2 Main Products and Key Technology 63 6.5.3 Enterprise Competitiveness 63 CHAPTER 7 DEVELOPMENT TREND ANALYSIS OF CHINESE DAIRY INDUSTRY 64 7.1 CONTINUING TO STRENGTHEN CONSTRUCTION OF MILK SOURCE BASE 65 7.2 ESTABLISH AND IMPROVE THE QUALITY AND SAFETY CONTROL SYSTEM OF ENTIRE INDUSTRY CHAIN 65 7.3 ADJUSTING PRODUCT STRUCTURE TO SPEED UP THE UPGRADING OF THE DAIRY INDUSTRY 65 7.3.1 Formula Milk Powder 65 7.3.2 Cheese 65 7.3.3 Yogurt 65 7.4 FURTHER DEVELOPMENT AND PROMOTION OF DAIRY PROCESSING TECHNOLOGY 66 7.5 GIVING FULL ATTENTION TO THE ADVANTAGES OF MILK SOURCES IN THE NORTH, WHILE DEVELOPING THE LOCAL DAIRY INDUSTRY IN THE SOUTH 66 PART III DEVELOPMENT OF CHINA DAIRY CONSUMPTION MARKET CHAPTER 8 DAIRY IMPORTS AND EXPORTS 67 8.1 CHINESE DAIRY IMPORTS (2001-2013) 67 8.1.1 Dairy Imports Are Substantial and Increasing Rapidly 67 8.1.2 After WTO Entry, Major Source Countries Are Stable and Highly Concentrated 67 8.1.3 Different Trends for Main Import Products, Evident Advantages in Source Countries 68 8.1.4. Import Price Grows Gradually 70 8.2 CHINA’S DAIRY EXPORTS (2001-2013) 71 8.2.1 China’s Dairy Exports Are Limited 71 8.2.2 Monotonous Export Varieties and Destination Countries 71 8.2.3 Export Price 71 iv Contents White Paper on China Dairy · 2014 8.3 OUTLOOK FOR DAIRY IMPORTS AND EXPORTS IN CHINA 72 CHAPTER 9 DAIRY CONSUMPTION IN CHINA 73 9.1 MILK CONSUMPTION IN CHINA, PAST AND PRESENT 73 9.2 THE CONSUMPTION OF YOGURT, MILK POWDER AND CHEESE 77 9.3 PURCHASING BEHAVIOR AND WILLINGNESS OF FAMILIES FOR DAIRY PRODUCTS 78 9.4 THE MAIN DETERMINANTS AND FUTURE TRENDS FOR DAIRY CONSUMPTION 80 9.4.1 The Major Driver for Dairy Consumption is Income Growth, Which Will Have Multifaceted Effects on Future Trends of Dairy Consumption in China 80 9.4.2 Urbanization And Lifestyle Change May Be Another Boosting Factor For Milk Consumption 83 9.4.3 Growth of Market Significantly Advances Milk Consumption. 84 CHAPTER 10 SUMMARY OF CHINA DAIRY CONSUMPTION 86 PART IV TECHNOLOGICAL DEVELOPMENT COUNTERMEASURES FOR CHINA DAIRY INDUSTRY CHAPTER 11 INTRODUCTION TO THE TECHNOLOGICAL DEVELOPMENT FOR CHINA DAIRY INDUSTRY 87 11.1 TECHNOLOGICAL DEVELOPMENT OF THE FODDER GRASS INDUSTRY 87 11.1.1 Development and Utilization of Fodder Grass Variety Resources 87 11.1.2 Fodder Grass Cultivation and Management Technologies 87 11.1.3 Fodder Grass Processing Technologies 87 11.2 DEVELOPMENT OF FEED AND NUTRITION TECHNOLOGIES 88 11.2.1 Establishment and Amendments of Chinese Dairy Cattle Requirement and Feeding Standard 88 11.2.2 Application of Straw Ensiling and Ammonization Technologies 88 11.2.3 Application of Total Mixed Ration (TMR) Technology 88 11.2.4 Application of Alfalfa 88 11.2.5 Application of Industrial Feed 88 11.3 DEVELOPMENT OF DAIRY BREEDING AND REPRODUC-TION TECHNOLOGIES 89 11.3.1 Breeding of Cattle Varieties in China 89 11.3.2 Research Progress of the Cow Stock Breeding Technical System in China 89 11.3.3 Establishment of Technical Platform for Cattle Whole Genomic Selection 91 11.3.4 Research into Transgenic Technologies 91 11.4 DEVELOPMENT OF COW DISEASE CONTROL TECHNOLOGIES 91 11.4.1 Eradication of Infectious Diseases 91 11.4.2 Mastitis Control Technologies 92 11.4.3 Hoof Disease Control Technologies
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