Welcome to the March Issue of Dairy Products China News.
This newsletter will help you stay ahead of the game in this fast-changing market with real-time reporting on the entire dairy industry chain, from raw milk and milk powder to infant formula, cheese and other end products. It includes breaking news from China and abroad, the latest market data (price, import & export, production, consumption, operating rates, etc.), in-depth analysis of market trends, Chinese government policy, performance of Chinese producers, M&A, new technology, and expert commentary from industry insiders.
Here is the Editor's Note for you to know about the March issue specifically:
Recent events in Chinese governing circles suggest a long period of stability at the top - a clear contrast to the trade turbulence threatened by the recent Trump behaviour. Within the market, though, the move to streamline towards what is being called "government lite" implies major changes will continue to affect the dairy sector in the coming years. Moreover in the economy change has continued apace, as befits a country whose GDP has risen by 86.9% since 2010 to account for 18.3% of global GDP last year.
Nowhere has this been more so than in the E-commerce sector, which exerts an increasing influence on the consumer dairy market.
This ongoing evolution is perhaps not surprising when we consider that 97.5% of China's online population can now access the internet via a smartphone. Statistics from the China National Commercial Information Center indicated E-commerce sales up 21% in 2017. Nielsen data tracking 34 FMCG categories shows that online sales grew 27% YOY (12 months to November 2017) compared with just 6% for offline sales. Kantar data for the 12 weeks ending 26th January 2018 shows that E-commerce achieved a record high of 12.4% share of all channels, with 42.6% of urban Chinese families buying FMCG online. In fact the expansion of the channel has been so successful that JD.com is now planning to launch in Europe in 2019. Moreover, after the proposed additional taxes were avoided due to the main operators' outcry, cross-border E-commerce has continued to grow as well: eMarketer estimated that China's online consumers spent USD100.2 billion on buying products cross border last year - even if this estimate is too high, the true level is widely held to be much more than the likely partial China Customs figures suggest.
None of this is unique to dairy, but these data serve as timely reminders that dairy brandowners fail to address these structural changes at their peril.
Dairy Products China News is a monthly published newsletter, which can be downloaded in PDF format. The subscription mode for this newsletter is yearly and the subscriber will receive 12 issues per year.
Table of Contents
Column 1 Market Dynamics
Mengniu and Yili Kick off 2018 with New Products
Regional Dairy Companies Vary in Profitability in 2017
Column 2 Governmental Direction
4 Food Safety Standards Revised Again
NPC Members Advise on Dairy Industry's Development
Abolition of CFDA May Slow Down Formulation Registration
CNCA's Latest Announcement for Overseas Infant Formula Producers
Column 3 Company Developments
Divergent Views on Beingmate's 2017 Earnings
ZDF to Exit New Third Board
Nestle Enters Organic Infant Formula Market
Column 4 Raw milk supply
China's Milk Price Drops in March
Column 5 News in Brief
Several Batches of Imported Dairy Products Returned
Bright Dairy Confirms its 2017 Government Subsidy Figure
Yashili Expands Infant Formula in Capacity
Xie Hong Appointed as CEO of Beingmate Group
Changsha Airport's Fresh Milk Imports Triple
New Farm and Dairy Processing Plant in Luopu
Wyeth and Abbott Introduce New Products
Chengde LoLo Performance Declines in 2017
Powdered Infant Formula Producers Registered from 21 February to 20 March, 2018