China Dairy Industry Investment Research Report

As China milk supply can not fully meet the needs of domestic processing, the annual import volume of China increased rapidly in recent years, from 1999 to 2005, China's dairy imports tripled, in 2004 and 2005, the total imports volume reached to over 300 thousand tons. During the next 5-15 years, China's per capita milk consumption is expected to reach to the Asian average, the rural residents' and low-income urban residents' per capitadairy consumption will increase significantly, with comprehensive consideration of various factors, to invest in milk production chain benefits may be more pronounced.

1. Analysis of Dairy Farming Industry 1
1.1. Overall Situation of Raw Milk Market  1
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