China Dairy Industry Investment Research Report

Beijing Orient Agribusiness Consultant, Ltd. (BOABC) is a professional consulting firm specialized in agribusiness consulting service to the food business chain. It was founded by a group of the very best experienced agricultural experts, with solid support from many divisions of Ministry of Agriculture such as High Quality Farm Product Development Center and CCPIT-SSA. It is the top professional service providing agricultural consultation recognized by the Ministry of Agriculture (MOA)BOABC’s special relationships with MOA enable it well-connected with reliable sources of data and information from institutions such as MOA Information Center, China Sate Statistics Bureau, the agricultural departments of local governments, as well as non-government industrial associations and agricultural extension services. BOABC has also established an advisory board consisted of experts from national agricultural universities and research institutions, professionals from agricultural policy decision-making agencies and related industrial associations, and business leaders of well-known agribusiness firmsThe insights and viewpoints from the board members sharpen the depth and breadth of BOABC’s reports. BOABC’s close contacts with agricultural import and export companies, domestic producers of grain, livestock, and other farm supplies ensure its information not only timely but also practically useful to the business world. The Chinese dairy industry has been sustaining a rapid growth, and is still one sector of the food industry that enjoys the best growing momentum in China. And China witnesses the fastest growth of the dairy industry in the world, and the overall sector is changing for the better year on year. The Dairy industry faces both opportunities and challenges, and is at the transitional period. The whole supply chain contains lots of investment opportunities. Specially, the huge market potential makes the Chinese dairy industry one of the fields enjoying the highest investment value Organized by BOABC and Beijing Orient Trust Investment Consultant Co. Ltd., the report is composed by senior Chinese experts and investment consultants. The report adopts data from authoritative organizations including the National Bureau of Statistics, the National Information Center, China Dairy Industry Association, Dairy Association of China, the Customs General Administration, and other legal channels. Also, the report uses materials from the long-term in-depth follow-up and field surveys of the two companies. After value chain analysis, SWOT, KSF and competition analysis, the report has analysis and evaluation on value of investment, direction of investment, way of investment and risks of investment in the Chinese dairy industry, and provides relevant suggestions on investments. The target readers of this report are industrial investors, strategic investors or financial investors both from home and abroad who pay attention to the Chinese dairy industry, and it is rare to see such a report. The report also provides reference for decision makers of giants of the dairy industry or related industries, research institutions, investment banks, funds and security agencies to learn the current development of Chinese dairy industry, to master the trend and investment opportunities.

Table of Contents
1. Analysis of Dairy Farming Industry 1
1.1 Overall Situation of Raw Milk Market1
1.1.1 Dairy Cattle Inventory 1
1.1.2 Dairy Cattle Yield 1
1.1.3 Milk Produciton 2
1.2 Characteristics of Regional Layout of Raw Milk Production 4
1.2.1 Main Provinces of Raw Milk Production 4
1.2.2 Market Shares of Raw Milk Producing Regions 5
1.2.3 Extension of Raw Milk Production towards Non-traditional Regions 6
1.3 Organization and Operation Mode of Raw Milk Production 7
1.4 Comparison of Input and Output between Dairy Farming and Crop Production and Other Types of Animal Farming 7
1.4.1 Comparision of Per Capita Possession Level between Milk and Other Agricultural Products, Animal Products and Acquatic Products 7
1.4.2 Comparison of Raw Milk Cost with International Market 8
1.5 Investment of Dairy Farming 10
1.5.1 Source of Investments 10
1.5.2 Scale of Investments 10
1.6 Key Factors Affecting Development of Dairy Farming 11
1.6.1 Driving Force 11
1.6.2 Restraints 12
1.7 Trend of Dairy Farming in Coming 5-15 Years 13
1.7.1 Overall Development Direction 13
1.7.2 Concrete Indices 13
2. Analysis of Dairy Processing Industry 15
2.1 Categories and Structure of Dairy Products 15
2.2 Quantity of Dairy Processing Companies and Relevant Scales 17
2.2.1.Quantity of Scaled Dairy Processing Companies 17
2.2.2 Regional Layout of Companies of Different Scales 17
2.3 Growth Level of Dairy Industry and Features of Life Cycle 18
2.3.1 Growth of Dairy Industry 18
2.3.2 Features of Life Cycle of Dairy Industry 19
2.3.3 Thresholds of Dairy Industry 20
2.4 Utilization Rate of Production Capacity of Dairy Compnies 20
2.4.1 Efficiency of Production Capacity 20
2.4.2 Key Factors Affecting Efficiency of Production Capacity 20
2.5 Capital Operation and Profit Generation of the Industry 21
2.5.1 Current Status of Capital Investment 21
2.5.2 Overall Profit Generation Level of the Industry 21
2.5.3 Comparision of Profit Generation Level of Dairy Companies of Different Scales 22
2.5.4 Comparision of Profit Generation Level of Dairy Companies of Different Economic Types 22
2.6 Key Factors Affecting Development of the Dairy Industry 23
2.6.1 Driving Force 23
2.6.2 Restraints 24
2.6.3 Trend of Dairy Processing in the Coming 5-15 Years 24
3. Analysis of Dairy Market 26
3.1 Relevant Economic Environment of the Dairy Market 26
3.2 Overall Scale of Milk Market 29
3.3 Scales of Dairy Markets of Different Regions 30
3.3.1 Current Status 30
3.3.2 Potential 31
3.4 Growth Level of Segmented Dairy Market 32
3.4.1 Liquid Milk 32
3.4.2 Solid Dairy Products 34
3.5 Import and Export of Dairy Products 39
3.5.1 Overall Dairy Trade 39
3.5.2 Import 39
3.5.3 Export 41
3.6 Market Competition of Dairy Industry 42
3.7 Growing Trend of Dairy Market in the Coming 5-15 Years 43
4. Analysis of Dairy Consumption 44
4.1 Overall Consumption Demand 44
4.1.1 Consumption Structure 44
4.1.2 Per Capita Level 44
4.2 Key Factors Affecting Dairy consumption 46
4.2.1 Driving Force 46
4.2.2 Restraints 46
4.3 Trend of Dairy Conumption Demnd in the Coming 5-15 Years 46

5. Top 10 Dairy Companies 47
5.1 Yili 47
5.1.1 Basic Situation 47
5.1.2 Product Composition and Market Share 47
5.1.3 Trend of Stock Price 48
5.1.4 SWOT Anaysis 49
5.1.5 Value Chain Analysis 49
5.1.6 Suggestion on Investment 50
5.2 Mengniu 50
5.2.1 Basic Situation 50
5.2.2 Product Composition and Market Share 51
5.2.3 Trend of Stock Price 51
5.2.4 SWOT Anaysis 52
5.2.5 Value Chain Analysis 52
5.2.6 Suggestion on Investment 53
5.3 Sanlu 53
5.3.1 Basic Situation 53
5.3.2 Product Composition and Market Share 54
5.3.3 SWOT Anaysis 54
5.3.4 Value Chain Analysis 55
5.3.5 Suggestion on Investment 55
5.4 Bright 56
5.4.1 Basic Situation 56
5.4.2 Product Composition and Market Share 56
5.4.3 Trend of Stock Price 57
5.4.4 SWOT Anaysis 58
5.4.5 Value Chain Analysis 58
5.4.6 Suggestion on Investment 59
5.5 Wandashan 59
5.5.1 Basic Situation 59
5.5.2 SWOT Anaysis 60
5.5.3 Suggestion on Investment 60
5.6 Sanyuan 61
5.6.1 Basic Situation 61
5.6.2 Product Composition and Market Share 61
5.6.3 Trend of Stock Price 62
5.6.4 SWOT Anaysis 62
5.6.5 Suggestion on Investment 63
5.7 Yinqiao 64
5.7.1 Basic Situation 64
5.7.2 Product Composition and Market Share 64
5.7.3 SWOT Anaysis 65
5.7.4 Value Chain Analysis 66
5.7.5 Suggestion on Investment 66
5.8 New Hope 66
5.8.1 Basic Situation 66
5.8.2 Product Composition and Market Share 67
5.8.3 SWOT Anaysis 67
5.8.4 Value Chain Analysis 68
5.8.5 Suggestion on Investment 68
5.9 Nestle (China ) 69
5.9.1 Basic Situation 69
5.9.2 Product Composition and Market Share 70
5.9.3 SWOT Anaysis 70
5.9.4 Value Chain Analysis 71
5.9.5 Suggestion on Investment 71
5.10 Dumex 71
5.10.1 Basic Situation 71
5.10.2 SWOT Anaysis 72
5.10.3 Value Chain Analysis 73
5.10.4 Suggestion on Investment 73
6. Analysis of Investment Opportunities 74
6.1 Growth of Market Capacity of Dairy Products 74
6.2 Maturity of Links of Value Chain of the Industry 76
6.2.1 Raw Milk Production 76
6.2.2 Dairy Processing 78
6.2.3 Sale of Dairy Products 81
6.2.4 Summery 81
6.3 Profit Distribution of Links of the Industrial Chain 81
6.3.1 Raw Milk Production 81
6.3.2 Dairy Processing 82
6.3.3 Sale of Dairy Products 86
6.3.4 Summery 87
6.4 Competitivenss of Links of the Industrial Chain 89
6.4.1 Raw Milk Production 89
6.4.2 Dairy Processing 89
6.4.3 Sale of Dairy Products 94
6.4.4 Summery 96
6.5 Comparison of Investment Opportunity of the Industrial Chain 97
6.5.1 Possiblilities of Invsetment 97
6.5.2 Choice of Investment Links 97
7. Suggestions on Investment Route in Dairy Industry 100
7.1 Investments by Domestic Companies (case studies) 100
7.1.1 Investments 100
7.1.2 Experiences 100
7.1.3 Features of Investments 102
7.2 Investments by Foreign Companies (case studies) 103
7.2.1 Investments 103
7.2.2 Experiences 103
7.2.3 Features of Investments 105
7.3 Summery 105
7.3.1 Restructuring of the Value Chain of the Industry 105
7.3.2 Affluent Capital 106
7.3.3 Joint Operation, Exploration of Joint Advantage 106
7.3.4 Choice on Links 107
7.4 Design of Optimal Investment Route 107
7.4.1 Target of Investment 107
7.4.2 Mode of Investment 109
7.4.3 Expected Financial Status 109
7.4.4 Withdrawl of Risk Capital 111
8. Investment Risks and Countermeasures 114
8.1 Market Risk 114
8.2 Policy Risk 115
8.3 Nature Risk 115
8.4 Other Risks 115