Special Research Report on China’s Dairy Farms

The Report covers the following aspects: development planning for the dairy industry and supportive policies, production of raw milk and changes in prices, technology and equipment of dairy farms, scaled dairy farming modes, economic benefits of dairy farming industry, survey in typical dairy farm production management as well as the assessment and judgment of future trends of China’s dairy farms.

Table of Contents
List of Charts and Tables
Research Conclusions
Research Background
 
1. Overview of Dairy Farming in China
1.1 Breeds of Cows and Distribution  
1.1.1 Breeds of Cows  
1.1.2 Regional Layout of Different Breeds  
1.2 Cow Milk Production Overview
1.2.1 Cow Inventory
1.2.2 Cow Milk Output
1.2.3 Unit Yield of Cow
1.2.4 Milk Source Layout
1.2.5 Raw Milk Price
1.3 Policy Environment for Dairy Farming
1.3.1 Development Goal
1.3.2 Dairy Processing and Dairy Animal Farming
1.3.3 Dairy Animal Farming and Raw Milk Procurement
1.3.4 National Standard for Raw Milk
1.3.4 Supportive Policy
1.4 Technology and Facility Environment of Dairy Farms
1.4.1 Gene Improvement
1.4.2 DHI Performance Test
1.4.3 Milking and Cold Storage Equipment
1.4.4 Pasture Management System
1.5 Input and Output Analysis on Dairy Farming
1.5.1 Composition of Input
1.5.2 Composition of Output
1.5.3 Changing Trend of Input and Output
1.6 Dairy Farming Modes
1.6.1 Concept of Dairy Farming Modes
1.6.2 Analysis on Farming Modes of Various Scales
1.6.3 Major Factors Affecting Changes of Farming Modes
 
2. Overview of Dairy Farms in China
2.1 Proportion of Scaled Dairy Farms
2.2 National Layout of Dairy Farms
2.3 Feeding Methods of Dairy Farms
2.4 Unit Yield Level of Dairy Farms
2.5 Herd Structure of Dairy Farms
2.6 Milking Methods
2.7 Feed Structure of Dairy Farms
2.8 Economic Benefits of Dairy Farms
Column I: How Dongxing Dairy Farm in Jiaxing City, Zhejiang Province Achieves Sound Economic Benefits
Column II: Dairy Farming Benefits and Planning of Modern Farming (01117.HK)
 
3. Current Status Analysis on Dairy Farms in Major Producing Provinces and Regions
3.1 Inner Mongolia
3.1.1 Development Planning for Dairy Industry and Supportive policies
3.1.2 Cow Breeds and Layout
3.1.3 Milk Price
3.1.4 Layout of Scaled Dairy Farming
3.1.5 Daily Milk Processing Capacity of Processing Companies
3.1.6 Analysis on Mechanized Milking
3.1.7 Analysis on Milk Stations and Their Management
3.1.8 Analysis on Fodder and Feed
3.1.9 Analysis on Cow Import Status
3.1.10 Interest Connecting Methods between Dairy Farms and Dairy Processing Enterprises
3.1.11 Analysis on Input and Output of Dairy Farms
3.2 Heilongjiang
3.2.1 Development Planning for Dairy Industry and Supportive policies
3.2.2 Cow Breeds and Layout
3.2.3 Procurement Milk Price
3.2.4 Layout of Scaled Dairy Farming
3.2.5 Daily Milk Processing Capacity of Processing Companies
3.2.6 Analysis on Mechanized Milking
3.2.7 Analysis on Milk Stations and Their Management
3.2.8 Analysis on Fodder and Feed
3.2.9 Analysis on Cow Import Status
3.2.10 Interest Connecting Methods between Dairy Farms and Dairy Processing Enterprises
3.2.11 Input and Output Analysis of Dairy Farms
3.3 Liaoning
3.3.1 Development Planning for Dairy Industry and Supportive policies
3.3.2 Cow Breeds and Layout
3.3.3 Procurement Milk Price
3.3.4 Layout of Scaled Dairy Farming
3.3.5 Daily Milk Processing Capacity of Processing Companies
3.3.6 Analysis on Mechanized Milking
3.3.7 Analysis on Milk Stations and Their Management
3.3.8 Analysis on Fodder and Feed
3.3.9 Analysis on Cow Import Status 
3.3.10 Interest Connecting Methods between Dairy Farms and Dairy Processing Enterprises
3.3.11 Input and Output Analysis of Dairy Farms
3.4 Hebei
3.4.1 Development Planning for Dairy Industry and Supportive policies
3.4.2 Cow Breeds and Layout
3.4.3 Procurement Milk Price
3.4.4 Layout of Scaled Dairy Farming
3.4.5 Daily Milk Processing Capacity of Processing Companies
3.4.6 Analysis on Mechanized Milking
3.4.7 Analysis on Milk Stations and Their Management
3.4.8 Analysis on Fodder and Feed
3.4.9 Analysis on Cow Import Status
3.4.10 Interest Connecting Methods between Dairy Farms and Dairy Processing Enterprises
3.4.11 Input and Output Analysis of Dairy Farms
3.5 Shandong
3.5.1 Development Planning for Dairy Industry and Supportive policies
3.5.2 Cow Breeds and Layout
3.5.3 Procurement Milk Price
3.5.4 Layout of Scaled Dairy Farming
3.5.5 Daily Milk Processing Capacity of Processing Companies
3.5.6 Analysis on Mechanized Milking
3.5.7 Analysis on Milk Stations and Their Management
3.5.8 Analysis on Fodder and Feed
3.5.9 Analysis on Cow Import Status
3.5.10 Interest Connecting Methods between Dairy Farms and Dairy Processing Enterprises
3.5.11 Input and Output Analysis of Dairy Farms
3.6  Shaanxi
3.6.1 Development Planning for Dairy Industry and Supportive policies
3.6.2 Cow Breeds and Layout
3.6.3 Procurement Milk Price
3.6.4 Layout of Dairy Farming by Scale
3.6.5 Daily Milk Processing Capacity of Processing Companies
3.6.6 Analysis on Mechanized Milking
3.6.7 Analysis on Milk Stations and Their Management
3.6.8 Analysis on Fodder and Feed
3.6.9 Analysis on Cow Import Status
3.6.10 Interest Connecting Methods between Dairy Farms and Dairy Processing Enterprises
3.6.11 Input and Output Analysis of Dairy Farms
3.7 Henan 
3.7.1 Development Planning for Dairy Industry and Supportive policies
3.7.2 Cow Breeds and Layout
3.7.3 Procurement Milk Price
3.7.4 Layout of Dairy Farming by Scale
3.7.5 Daily Milk Processing Capacity of Processing Companies
3.7.6 Analysis on Mechanized Milking
3.7.7 Analysis on Milk Stations and Their Management
3.7.8 Analysis on Fodder and Feed
3.7.9 Analysis on Cow Import Status
3.7.10 Interest Connecting Methods between Dairy Farms and Dairy Processing Enterprises
3.7.11 Analysis on Input and Output of Dairy Farms
3.8 Xinjiang
3.8.1 Development Planning for Dairy Industry and Supportive policies
3.8.2 Cow Breeds and Layout
3.8.3 Procurement Milk Price
3.8.4 Layout of Dairy Farming by Scale
3.8.5 Daily Milk Processing Capacity of Processing Companies
3.8.6 Analysis on Mechanized Milking
3.8.7 Analysis on Milk Stations and Their Management
3.8.8 Analysis on Fodder and Feed
3.8.9 Analysis on Cow Import Status
3.8.10 Interest Connecting Methods between Dairy Farms and Dairy Processing Enterprises
3.8.11 Input and Output Analysis of Dairy Farms 
Column III: Economic Benefits and Development Planning of Dairy Farming of Xinjiang Western Animal Husbandry Co., Ltd.
3.9 Shanxi
3.9.1 Development Planning for Dairy Industry and Supportive policies
3.9.2 Cow Breeds and Layout
3.9.3 Procurement Milk Price
3.9.4 Layout of Dairy Farming by Scale
3.9.5 Daily Milking Processing Capacity of Processing Companies
3.9.6 Analysis on Mechanized Milking
3.9.7 Analysis on Milk Stations and Their Management
3.9.8 Analysis on Fodder and Feed
3.9.9 Analysis on Cow Import Status
3.9.10 Interest Connecting Methods between Dairy Farms and Dairy Processing Enterprises
3.9.11 Input and Output Analysis of Dairy Farms
3.10 Ningxia
3.10.1 Development Planning for Dairy Industry and Supportive policies
3.10.2 Cow Breeds and Layout
3.10.3 Procurement Milk Price
3.10.4 Layout of Dairy Farming by Scale
3.10.5 Daily Milk Processing Capacity of Processing Companies
3.10.6 Analysis on Mechanized Milking
3.10.7 Analysis on Milk Stations and Their Management
3.10.8 Analysis on Fodder and Feed
3.10.9 Analysis on Cow Import Status
3.10.10 Interest Connecting Methods between Dairy Farms and Dairy Processing Enterprises
3.10.11 Input and Output Analysis of Cows
3.11 Jiangsu 
3.11.1 Development Planning for Dairy Industry and Supportive policies
3.11.2 Cow Breeds and Layout
3.11.3 Procurement Milk Price
3.11.4 Layout of Dairy Farming in Scale
3.11.5 Daily Milk Processing Capacity of Processing Companies
3.11.6 Analysis on Mechanized Milking
3.11.7 Analysis on Milk Stations and Their Management
3.11.8 Analysis on Fodder and Feed
3.11.9 Analysis on Cow Import Status
3.11.10 Interest Connecting Methods between Dairy Farms and Dairy Processing Enterprises
3.11.11 Input and Output Analysis of Cows
3.12 Sichuan
3.12.1 Development Planning for Dairy Industry and Supportive policies  
3.12.2 Cow Breeds and Layout
3.12.3 Procurement Milk Price
3.12.4 Layout of Dairy Farming by Scale
3.12.5 Daily Milk Processing Capacity of Processing Companies
3.12.6 Analysis on Mechanized Milking
3.12.7 Analysis on Milk Stations and Their Management
3.12.8 Analysis on Fodder and Feed
3.12.9 Analysis on Cow Import Status
3.12.10 Interest Connecting Methods between Dairy Farms and Dairy Processing Enterprises
3.12.11 Input and Output Analysis of Dairy Farms
3.13 Beijing
3.13.1 Development Planning for Dairy Industry and Supportive policies
3.13.2 Cow Breeds and Layout
3.13.3 Procurement Milk Price
3.13.4 Layout of Dairy Farming by Scale
3.13.5 Daily Milking Processing Capacity of Processing Companies
3.13.6 Analysis on Mechanized Milking
3.13.7 Analysis on Milk Stations and Their Management
3.13.8 Analysis on Fodder and Feed
3.13.9 Analysis on Cow Import Status
3.13.10 Interest Connecting Methods between Dairy Farms and Dairy Processing Enterprises
3.13.11 Input and Output Analysis of Dairy Farms
3.14 Shanghai
3.14.1 Development Planning for Dairy Industry and Supportive policies
3.14.2 Cow Breeds and Layout
3.14.3 Procurement Milk Price
3.14.4 Layout of Dairy Farming by Scale
3.14.5 Daily Milk Processing Capacity of Processing Companies
3.14.6 Analysis on Mechanized Milking
3.14.7 Analysis on Milk Stations and Their Management
3.14.8 Analysis on Fodder and Feed
3.14.9 Analysis on Cow Import Status
3.14.10 Interest Connecting Methods between Dairy Farms and Dairy Processing Enterprises
3.14.11 Input and Output Analysis of Dairy Farms
3.15 Tianjin
3.15.1 Development Planning for Dairy Industry and Supportive policies
3.15.2 Cow Breeds and Layout
3.15.3 Procurement Milk Price
3.15.4 Layout of Dairy Farming by Scale
3.15.5 Daily Milk Processing Capacity of Processing Companies
3.15.6 Analysis on Mechanized Milking
3.15.7 Analysis on Milk Stations and Their Management
3.15.8 Analysis on Fodder and Feed
3.15.9 Analysis on Cow Import Status
3.15.10 Interest Connecting Methods between Dairy Farms and Dairy Processing Enterprises
3.15.11 Input and Output Analysis of Dairy Farms
 
4. Survey Analysis on Production Management of Typical Dairy Farms in China
4.1 Layout of Scaled Dairy Farms 
4.1.1 Composition
4.1.2 Regional Layout
4.2 Survey Analysis on Production Management of Dairy Farms of Various Scales
4.2.1 Inner Mongolia Helingeer Modern Animal Husbandry Co., Ltd.
4.2.2 Beijing Sanyuan Luhe No. 1 Dairy Farm
4.2.3 Tianjin Runhua Dairy Farm
4.2.4 Hebei Shuangwa Luanxian County Dairy Farm
4.2.5 Heilongjiang Anda Friendship Dairy Farm
4.2.6 Dalian Shengda Animal Farming Co., Ltd., Liaoning
4.2.7 Shanghai Bright Jinshan Dairy Farm
4.2.8 Fujian Changfu No. 33 Dairy Farm
4.2.9 Dairy Farm of Shandong Zaozhuang Xianghe Dairy Co., Ltd.
4.2.10 Huanggang Xianglin Dairy Farm, Hubei
4.2.11 Green Kylin Dairy Farm, Zhengzhou, Henan
4.2.12 New Hope Hongya Pilot Farm, Sichuan
4.2.13 Xi’an Caotan Farm, Shaanxi
4.2.14 Tianshan Animal Farm, Xinjiang
4.2.15 Tangshan Fonterra Dairy Farm Co., Ltd., Hebei
 
5. BOABC’s Assessment of Current Status and Judgment of Future Trend for Dairy Farms in China
 
5.1 Current Development Status of Dairy Farms in China
5.1.1 Challenges Confronted by Scaled Dairy Farms in China
5.1.2 Potential and Opportunity of Scaled Dairy Farms in China
5.2 BOABC’s Judgment on Future Trend of Scaled Dairy Farms in China
 
Appendices
Appendix 1: Raw Milk Supply and Demand Balance Sheet of China, 2010~2012
Appendix 2: List of Major Dairy Groups of China

• Mengniu Dairy Group
• Yili Group
• Bright Dairy
• Modern Farming
• Shengmu High-technology
• Tianjin Jialihe
• Beijing Sanyuan Luhe
• Shenyang Huishan Dairy
• Heilongjiang Agricultural Reclamation
• Xinjiang Production and Construction Corps
• Ningxia Agricultural Reclamation
• Dairy United

Appendix 3: List of Dairy Farms with Inventory above 1000, 2012
 
 
List of Charts and Tables
Charts
Chart 1-1: Changes of Cow Inventory in China, 1996-2012
Chart 1-2: Changes of Cow Milk Production in China, 1996-2012
Chart 1-3: Changes of Cow (Adult cow) Yield Level in China, 1999-2012
Chart 1-4: Price Trend of Raw Milk in the 10 Leading Producing Provinces and Regions in the North of China, by Month, 2008-2012
Chart 1-5: Trend of Gross Margin for Different Farming Scales, 2004-2012
Chart 1-6: Changes in Economic Benefits for Dairy Farming in China, by Month, 2009-2011
Chart 2-1: Proportion of Dairy Farms (Neighborhoods) with Inventory above 100 in National Total, 2011
Chart 2-2: Proportion of Cow Inventory of Dairy Farms (Neighborhoods) with Inventory above 100 in National Total, 2011
Chart 2-3: Proportion of Cow Inventory of Dairy Farms (Neighborhoods) with Inventory above 1000, 2011
Chart 3-1: Layout of Cow Inventory in Inner Mongolia, 2011
Chart 3-2: Layout of Scaled Dairy Farming in Inner Mongolia, by Cow Inventory, 2011
Chart 3-3: Layout of Dairy Farms (Households) of Various Scales in Main Producing Regions of Inner Mongolia, 2011
Chart 3-4: Layout of Cow Inventory in Heilongjiang, 2011
Chart 3-5: Layout Map of Heilongjiang Agricultural Reclamation Area
Chart 3-6: Layout of Scaled Dairy Farming in Heilongjiang, by Cow Inventory, 2011
Chart 3-7: Quantity Layout of Scaled Dairy Farms with Inventory over 100 in Heilongjiang and Harbin City, 2011  
Chart 3-8: Layout of Scaled Dairy Farming in Liaoning, by Cow Inventory, 2011
Chart 3-9: Quantity Layout of Scaled Dairy Farms with Inventory over 100 in Liaoning, 2011
Chart 3-10: Layout of Scaled Dairy Farming in Hebei, by Cow Inventory, 2011
Chart 3-11: Quantity Layout of Scaled Dairy Farms with Inventory over 100 in Hebei, 2011
Chart 3-12: Layout of Scaled Dairy Farming in Shandong, by Cow Inventory, 2011
Chart 3-13: Layout of Scaled Dairy Farming in Shaanxi, by Cow Inventory, 2011
Chart 3-14: Layout of Scaled Dairy Farming in Henan, by Cow Inventory, 2011
Chart 3-15: Layout of Scaled Dairy Farming in Xinjiang Uygur Autonomous Region, by Cow Inventory, 2011
Chart 3-16: Layout of Scaled Dairy Farming in Shanxi, by Cow Inventory, 2011
Chart 3-17: Layout of Scaled Dairy Farms in Ningxia Hui Autonomous Region, by Cow Inventory, 2011
Chart 3-18: Layout of Scaled Dairy Farms in Jiangsu, by Cow Inventory, 2011
Chart 3-19: Layout of Scaled Dairy Farms in Sichuan, by Cow Inventory, 2011
Chart 3-20: Layout of Scaled Dairy Farms in Beijing, by Cow Inventory, 2011
Chart 3-21: Layout of Scaled Dairy Farms in Tianjin, By Cow Inventory, 2011
Chart 4-1: Layout of Scaled Dairy Farms in China, by Cow Inventory, 2011
Chart 4-2: Regional Layout of Scaled Dairy Farms with Inventory above 1000, by Quantity of Dairy Farms, 2011
Chart 4-3: Regional Layout of Dairy Farms with Inventory over 100, by Cow Inventory, 2011
Chart 4-4: Regional Layout of Dairy Farms with Inventory above 500, by Cow Inventory, 2011
Chart 4-5: Regional Layout of Dairy Farms with Inventory above 1000, by Cow Inventory, 2011
 
Tables
Table 1-1: Milk Production and Average Yield of Adult Cows in Different Provinces and Regions of China, 2011
Table 1-2: Top Ten Provinces and Regions of China by Milk Output, 2011
Table 1-3: Top Ten Cities of China by Milk Output, 2011
Table 1-4: Prefecture-level Cities with Milk Output exceeding 500,000 tons, 2011
Table 1-5: Oranoleptic Indicators
Table 1-6: Physicochemical Indicators
Table 1-7: Microorganism Limit
Table 1-8: Breeds of Breeding Bulls of Major Breeding Companies in China and Inventory, 2012
Table 1-9: Foreign-funded Breeding Bull Stations in China and Major Breeding Companies  
Table 1-10: Major Indicators on Production Performance of DHI Tested Dairy Farms of Key Provinces in China, 2012
Table 1-11: Production Performance of DHI Tested Farms with Different Inventory Scale in Key Provinces of China, 2012
Table 1-12: List of Recommended Milking Equipment, 2009-2011
Table 1-13: List of Recommended Milk Storage Tanks (Cold Storage), 2009-2011
Table 1-14: Feed Cost and Changes of Raw Milk Procurement Price for Farming Modes with Different Scales, 2004-2011
Table 2-1: Changes in Dairy Farming Scale of China, 2002-2011
Table 2-2: Analysis on Input and Output per Cow on Medium- and Large-Scaled Dairy Farms, 2011
Table 2-3: Dairy Farming Benefits List of Modern Farming (01117.HK)
Table 3-1: Cow Inventory of Major Counties (County-level cities/districts) in Inner Mongolia, 2009-2011
Table 3-2: Analysis on Input and Output per Cow on Medium-Scaled Dairy Farms in Inner Mongolia, 2011
Table 3-3: Cow Inventory of Major Counties (County-level cities/districts) in Heilongjiang, 2009-2011
Table 3-4: Analysis on Input and Output per Cow at Large-Scaled Dairy Farms in Heilongjiang, 2011
Table 3-5: Analysis on Input and Output per Cow at Medium- and Large-Scaled Dairy Farms in Liaoning, 2011
Table 3-6: Cow Inventory of Major Counties (County-level cities/districts) in Hebei, 2009-2011
Table 3-7: Cow Inventory of Major Counties (County-level cities/districts) in Shandong, 2009-2011
Table 3-8: Analysis on Input and Output per Cow at Large-Scaled Dairy Farms in Shandong, 2011
Table 3-9: Cow Inventory of Major Counties (County-level cities/districts) in Shaanxi, 2009-2011
Table 3-10: Analysis on Input and Output per Cow on Large-Scaled Dairy Farms in Shaanxi, 2011
Table 3-11: Cow Inventory of Major Counties (County-level cities/districts) in Henan, 2009-2011
Table 3-12: Analysis on Input and Output per Cow on Medium- and Large-Scaled Dairy Farms in Henan, 2011
Table 3-13: Cow Inventory Scale of Major Counties (County-level cities/districts) in Xinjiang Uygur Autonomous Region, 2009-2011
Table 3-14: Analysis on Input and Output per Cow on Medium- and Large-Scaled Dairy Farms in Xinjiang Uygur Autonomous Region, 2011
Table 3-15: Principal Businesses and Operational Situations of Western Animal Husbandry Co., Ltd., 2011
Table 3-16: Detail of Subsidies to Western Animal Husbandry from Shihezi and No. 8 Agricultural Division Governments, 2011
Table 3-15: Cow Inventory of Major Counties (County-level cities/districts) of Shanxi, 2009-2011
Table 3-16: Analysis on Input and Output per Cow on Dairy Farms of Shanxi, 2011
Table 3-17: Cow Inventory Scale of Major Counties (County-level cities/districts) of Ningxia Hui Autonomous Region, 2009-2011
Table 3-18: Analysis on Input and Output per Cow on Dairy Farms of Ningxia Hui Autonomous Region, 2011
Table 3-19: Analysis on Input and Output per Cow on Dairy Farms in Sichuan, 2011
Table 3-20: Analysis on Input and Output per Cow on Dairy Farms in Beijing, 2011
Table 3-21: Analysis on Input and Output per Cow on Dairy Farms in Shanghai, 2011
Table 3-22: Analysis on Input and Output per Cow on Dairy Farms in Tianjin, 2011
Table 4-1: Production Management of Inner Mongolia Helingeer Modern Animal Husbandry Co., Ltd., 2011
Table 4-2: Production Management of Beijing Sanyuan Luhe No. 1 Dairy Farm, 2011
Table 4-4: Production Management of Hebei Shuangwa Luanxian County Dairy Farm, 2012
Table 4-5: Production Management of Heilongjiang Anda Friendship Dairy Farm, 2012
Table 4-6: Production Management of Dalian Shengda Animal Farming Co., Ltd., Liaoning, 2012
Table 4-7: Production Management of Shanghai Bright Dairy Jinshan Dairy Farm, 2012
Table 4-8: Production Management of Fujian Changfu No. 33 Dairy Farm, 2012
Table 4-9: Production Management of Dairy Farm of Shandong Zaozhuang Xianghe Dairy Co., Ltd., 2012
Table 4-10: Production Management of Huanggang Xianglin Dairy Farm, Hubei, 2012
Table 4-11: Production Management of Green Kylin Dairy Farm, Zhengzhou, Henan, 2012
Table 4-12: Production Management of New Hope Hongya Pilot Farm, Sichuan, 2012
Table 4-13: Production Management of Xi’an Caotan Farm, Shaanxi, 2012
Table 4-14: Production Management of Tianshan Animal Farm, Xinjiang, 2012
Table 4-15: Production Development of Tangshan Fonterra Dairy Farm Co., Ltd., Hebei, 2012