The quality of raw milk and dairy products in China is increasing, but the domestic dairy industry still faces challenges, an expert said at a forum held in Beijing on Thursday. Li Shengli, director of the Sino-Dutch Dairy Development Center, said consolidation in the dairy sector was increasing, with the ratio of scaled dairy farms (those with more than 100 cattle) having reached 50 percent…Full Article: Dec 2017

Key Point

  • According to the director of the Sino-Dutch Dairy Development Center, China’s dairy industry is suffering from a shortage of animal feed, high domestic prices versus international prices, lack of skilled dairy workers, and poor demand for high quality high-value products such as butter and cheese.

ChinaAg Comments

  • In January 2017, Royal FrieslandCampina opened a “training kitchen” in Shanghai to instruct cooks on the use of milk-based products. According to the Dutch company, dairy products account for 5% of the ingredients used by Hong Kong’s catering (restaurant) industry.
  • In 2016, according to Fonterra’s managing director in China, mozzarella sales in China increased by 66%.
  • As of late 2016, Royal FrieslandCampina “Dutch Lady” brand dairy products were only being sold in Hunan Province, Sichuan Province, and Chongqing Municipality.
  • In June 2016, the Dutch dairy, Royal FrieslandCampina, partnered with Suning Commerce Group (Chinese retailer) to sell dairy products in China. Royal FrieslandCampina hopes to expand their market penetration in the provinces of Anhui, Henan, Hebei, and Gansu. During the same month, Alibaba’s Taobao acquired just under 20% of (~1.8 billion shares for CNY 28.2 billion) of Suning.
  • In 2015, Royal FrieslandCampina (founded in 1871) had approximately EUR 1 billion (US$1.13 billion) worth of sales in the Chinese market.
  • In April 2015, China Huishan Dairy (HKG:6863) and Royal FrieslandCampina established a Chinese joint venture.
  • In March 2015, Rabobank joined the SDDDC.
  • In December 2014, CRV (dairy genetics) and Beijing SinoFarm Livestock Technology joined the Sino-Dutch Dairy Development Centre.
  • In February 2014, Inner Mongolia’s Yili Group and officials from the Netherlands’ Wageningen University opened a dairy research and development facility. The opening ceremony for the new research and development center for Yili took place in Wageningen, the Netherlands.
  • Founded in November 2013 and headquartered in Beijing, the Sino-Dutch Dairy Development Centre (SDDDC) was established by Beijing’s China Agricultural University, Wageningen University and Research Centre, and the Dutch dairy company FrieslandCampina. The purpose of the SDDDC is to apply Dutch technical knowhow to the Chinese dairy industry.

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