China’s dairy market is projected to grow at a CAGR of 12% during 2015-2018

GUANGZHOU, China - March 19, 2015 - PRLog -- China’s dairy product industry in 2014 has seen frequent mergers and acquisitions (M&A) between enterprises as supported by the Chinese government. This indeed helps to improve the market competitiveness of the enterprises and optimize the resources.

On May 30, 2014, the China Food and Drug Administration (CFDA) announced that 82 Chinese infant formula processors have now acquired production licenses and the other 51 infant formula processors that failed to pass the review (or applied to delay the review or applied to cancel the license) have had to suspend production.

At the end of 2013, CFDA released the Detailed Rules for Infant Formula Processor Approval, which raised the bar for infant formula production by posing stricter requirements in respect of raw materials, product formulations, technical processes and procedures, premises and equipment, etc.

In June 2013, the State Council approved the Plan for Promoting the Merger and Acquisition (M&A) among Infant Formula Powder Enterprises, published by the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Finance and the CFDA. After the following five years, the number of China's enterprises in infant formula powder industry will be integrated into about 50.

With the urbanization, the implementation of Two-child policy and people’s health awareness rises, China’s dairy production is projected to go on increasing with a CAGR of 12% during 2014-2018, and dairy products structure will be more diversified. Also, dairy products' import and export will be gradually balanced. According to the agricultural industry structure, the dairy industry output value in developed countries accounts for 20% of the total output value of agriculture, forestry, animal husbandry and fishery industries, and 40% of total output value of the animal husbandry, but currently in China's dairy industry, the numbers are just 3% and 10% respectively, indicating there is still much room for development and growth potential.

China's dairy industry is developing smoothly at present. There are obvious improvements at the levels of technical equipment, milk production bases, dairy cow breeding and production scale. To clearly describe the present situation of China's dairy industry, CCM has collected lots of information in various ways. In the new report Present Situation Analysis of Dairy Industry Development in China, China’s dairy product industry has been analyzed exhaustively from the following aspects:

- Production situation of dairy industry

- Consumption situation of dairy industry

- Import & export analysis in dairy industry