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    China Business
     Sep 22, 2005
Dairy industry sees modernization

HOHHOT - The dairy products processing industry, since development started in 1994, has become a well-equipped, modern food processing industry which offers fairly complete product lines.

At the 11th annual meeting of the China Dairy Products Association, held recently in Hohhot, capital of Inner Mongolia ,



association director Song Kungang summed up the sector's development with six key findings:

  • Production of dairy products has grown by many times to meet increasing market demand. In 2004, China's milk output was 23.68 million tons, 2.5 times the figure in 1995; the total output value of the dairy industry, 66.3 billion yuan, up 7.5-fold; and per capita expenditure on dairy products by urban households, 124.7 yuan, up 3-fold from 1995. Dairy products have become a daily staple for many Chinese, which was not the case in the past.
  • Technical capability has greatly improved, nearing the level of advanced dairy countries. In the past 10 years, China has newly launched, expanded and technically renovated many dairy projects, and the technical level of large and medium-sized enterprises has clearly improved.
  • The production scale of enterprises has expanded rapidly, and a number of large enterprises with brand products of their own have emerged. The top 10 dairy producers in China in 1995 produced 56,000 tons of dairy products in the year, valued at 1.04 billion yuan, accounting for 10.6% and 13.3% of the country's total, respectively, in that year. In 2004, the top 10 producers produced 4.695 million tons, or 37.68 billion yuan worth of dairy products, accounting for 49.5% and 56.8% of the country's total.
  • Product quality has obviously improved.
  • The breadth of product lines has improved. China produced 8 million tons of liquid milk in 2004 with an output value reaching 40 billion yuan, accounting for 60% of China's total output value of dairy products in the year.
  • The area of consumption has changed greatly, with the focus shifting from large and medium-sized cities to small cities and towns and rural areas.

    (Asia Pulse/XIC)
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