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Dairy product industry hot topics in 2013-2014:
-On 30 May 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
-At the end of 2013, the CFDA released the Detailed Rules for Infant Formula
Processor Approval (the Rules), which raise 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.
Affected by the Chinese macroeconomic environment and the growth of dairy market
consumption, dairy production and per capita dairy consumption increased
significantly, dairy industry has already became one of the fastest growing
industries in China. But several problems such as unreasonable structure, lack
of technical standards and overall monitoring came up during the process of
development. At this time, the policies and supervision of the government and
supervision is especially important.
Purpose of report:
To clearly describe the government direction of China's dairy industry, CCM has
collected lots of information in various ways. In this report, all aspects of
the government policies and supervision have been analyzed.
What to report:
In this report, government direction of China's dairy product industry has been
analyzed exhaustively from the following aspects:
The Chinese government will continue to strengthen the guide of dairy industry
and will pay more attention to dairy safety problems and structure optimization
of dairy industry. At the international level, international dairy cooperation
will still be the most important topic.
2 Industry development
2.1 Promotion management methods for school milk programme released
2.2 New policy forced Abbott to move formula plant
2.3 82 infant formula processors passed review
2.4 Infant formula processors established credibility files
3 Industry standard
3.1 China issued Guideline for food and nutrition development
3.2 AQSIQ strengthened supervision of food imports
3.3 Merger and Consolidation Plan of Dairy Industry issued
3.4 China speeded up construction of traceability system for infant formula
3.5 13th Five-Year Plan for China's dairy industry
4 International cooperation
4.1 New Zealand milk powder imports exceeded trigger level
4.2 China confirmed and permitted infant formula exporters
4.3 China reached free trade deal with Australia
LIST OF TABLES
Table 2.3-1 China's Top 6 regions for Milk Production, 2012
Table 3.3-1 Examples of Dairy M&A in China, 2013-H1 2014
Table 4.1-1 Tariff Reductions on Selected Dairy Products from New Zealand,
Table 4.1-2 China's Imports of Selected Dairy Products from New Zealand,
Table 4.1-3 China's Imports of Infant Formula, 2010-2013
Table 4.2-1 Foreign Manufacturers of Infant Formula Registered in China, 27 May,
LIST OF FIGURES
Figure 4.2-1 China's imports of infant formula by origin, 2013
Figure 4.2-2 China's Infant Formula Import Trends, 2008-Q1 2014