China’s Dairy Industry To Accelerate The Integration Imminent

China’s Dairy Industry To Accelerate The Integration Imminent

Dairy Association of China will Sanlu Summed up the underlying causes of the incident due to large-scale farming, industry less integration, less industry standard. Although Sanlu incident far-reaching impact on China’s dairy industry, but up to now, industrial integration problem is still the urgent need for the development of China’s dairy industry bottleneck.

Recently ended in the seventh high-level forum on China’s dairy industry, the Chinese Sanlu Dairy Association will be summarized in the underlying causes of the incident due to large-scale farming, industry, less integration, less the industry standard. However, the focus of the industry in the forum due to integration problems, high-level Chinese Dairy Association admits there is no breakthrough of property rights problems.

“Late start in China dairy industry development, dairy farming is small, scattered, low status, long time not been fundamentally reversed, the urgent need to scale, intensive, standardized change. In China, the dairy industry integration (ie dairy farming? raw milk processing? finished Milk Sell ), The results are not satisfactory, the Melamine Exposure incident, the Chinese dairy industry has been into the prototype. “China Investment Advisor Food Industry researcher Chen Chen “China Sankei Shimbun,” told reporters.

Integration in the dairy industry chain in the interests of the industry chain imbalance is the result of melamine causes of the incident is currently hindered the development of dairy industry’s long-term reasons. Chen Chen said, because in this chain, relatively speaking, the cost of dairy farming is the largest, but its profits instead of the minimum; and finished to minimize the cost of milk sales, but profit is really the greatest.

“Affect the integration of China’s dairy industry and the fundamental problem is that dairy farmers Dairy Business interests are not tied together, not in a chain structure, although the melamine incident far-reaching impact on China’s dairy industry, but the entire industry reform path is unknown, so take the dairy industry, the path of integration should be speeded up. “June 23, Dairy Association, Guangzhou, Wang Ding cotton on” China Sankei Shimbun, “told reporters. Dairy Association of China Liu

results also indicated that China’s dairy industry the way out is to change mode of operation, so that dairy companies and dairy farmers from the sale of loose ties to the close relationship between the integration of changes.

So, how to speed up the process of integration of China’s dairy business?

Wang Ding cotton that dairy farmers and milk only to the interests of both enterprises tied together, to pool the risk of integration is the key to solve the dairy industry. Dairy milk enterprises join hands to equity participation, both to reduce risk, and secondly to strengthen the management, the real fundamental solution to China’s dairy industry over the current problem of fragmentation.

“At present, the dairy enterprises should think about how the ones who enjoy dairy farmers to form a stable trend of industrial development. Because only the upstream dairy farming to ensure good integration of the development industry. For example, to develop dairy cattle Cooperation Society, by the cooperatives and dairy processing enterprises to establish long-term contractual relationship or stock cooperative. “Chen Chen said.

China Dairy Association Secretary-General Wei Kejia are proposed under the existing conditions of the milk industry to promote the integration of the development of dairy cooperatives, dairy cooperatives and processing enterprises to establish long-term contracts or stock cooperative relations is an optional mode.

Liu results also believes that the current implementation of the Milk Integration, the most common way is to strengthen the acquisition contract. This is the integration of the most common, best part of the operation, in essence, is the order milk. From now on this basis should be gradually integrated closely connected to the transitional type.

From the present situation, our country in the integration of the dairy industry has a lot to work under, we can see that Sanlu incident, built by the government-led plot cows, dairy processing enterprises stability and the Government signed the contract in the form of the acquisition is worth promoting, but a mechanism has not yet formed, the Government should increase exploration and practice of this model to help the dairy industry to achieve industrial integration.

“, As the Government played a leading role in the integrated model is a crisis only as an expedient measure, from the current situation, there continue to be long-term implementation of the parties as related to business and upper milk Some of the interests of farmers; In addition, to really milk the industrial integration, it takes time, from the current efforts of relevant departments and industry and long-term development trend of China’s dairy industry, China dairy industry is expected integration times come, only a matter of time. “Chen Chen said.

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