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Dairy Products China News

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LSH 16.06.30

Headlines

China's dairy industry maintained steady and positive development in 2019, and recovered rapidly in H1 2020 after the severest stage of the COVID-19 outbreak.

During the post-pandemic period when IF sales recovered slowly, many merchants have launched big sales promotion activities, while 4 leading IF brands increased their prices on the contrary.

According to the 2020 Evaluation Report on Lactoferrin and Probiotic Contents in China's Infant Formulas, checks have shown that the 31 IF products reviewed were compliant to national standards in terms of their content for these ingredients.

The extensive COVID-19 outbreak has dramatically curbed the orders of Chinese procurement agents overseas, with a2MC and Danone incurring reduced revenues at the same time.

On 12 October, the DAC issued a D20 3-Year Plan, requiring the member companies to be leading international players by 2023.

On 5 October, Fonterra gave the green light to selling its Chinese farms to Natural Dairy and Sanyuan, effectively the end of its 13 year foray into dairying in China.

Following the acquisition in August that made it the 2nd largest shareholder in Zhongdi Dairy, Yili announced a new offer to buy more of this company on 27 September - further steps in the group's push for improved milk supply.

In early September, China Feihe proposed to acquire Yuanshengtai Dairy completely; however, the deal stagnated due to delayed dispatch of the composite document.

In Q1-Q3, Tianrun Dairy achieved growth in both its revenue and net profit, with sales of its UHT dairy products rising 23.3% YoY.

Due to tight supply and high feed costs, China's milk price recovered in July and this month has hit its highest level since February 2015.

Table of Contents

Editor Notes

Market Dynamics

Key Indicators for China's Dairy Industry in 2019 and H1 2020

IF Big Sale vs. Price Markups

31 IFs Approved for Lactoferrin or Probiotic Content Levels

Chinese Procurement Agents Receive Fewer Orders

Governmental Direction

China Releases D20 3-Year Plan

Company Development

Fonterra Sells Its Chinese Dairy Farms

Yili Doubles Stake in Zhongdi Dairy

China Feihe Stumbles over Acquisition of Yuanshengtai Dairy

Tianrun Dairy Reports Growth in Q1-Q3

Raw milk supply

Raw Milk Price Remains Buoyant in October

News in Breif

Dairy Imports in September 2020

Panda Dairy Issues Shares in IPO

Natural Dairy Plans to Start Operations at Its 1st Demonstration Dairy Farm in late October

Stronger Government Supports for Yili Health Valley Project

Yili's Plans Further Funding for its Farmers

Polish Dairy Products Arrive in China by Train

Fonterra to Raise Milk Price

Bright Dairy Violates Advertising Law

Qingdao Customs Test New Approach for Imported Fresh Milk

Hebei, Heilongjiang, Shaanxi's Milk Reference Price in Q4

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