Changes in the industrial chain under the hottest

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Changes in the industrial chain under the fresh food ban order grassland dairy enterprises support the fresh food ban

"fresh food ban order" will be officially implemented from October this year. As the leading enterprises of grassland based dairy industry, Yili shares (600887) and Mengniu Dairy (2319-hk) have recently visited these two companies on how to deal with it. They conducted surveys and interviews on issues of concern to readers and investors

what is used as raw material after fresh food ban

after the implementation of the "fresh ban order", will dairy processing enterprises significantly reduce the use of raw milk and instead use imported milk powder to blend liquid milk? Facing the problem that consumers and dairy farmers are most concerned about, Wang Zhengtao, general manager of the operation and Management Department of Yili Co., Ltd., made it clear that Yili currently has sufficient milk sources, and the purchase price of fresh milk is about 1.7 to 1.8 yuan per kilogram, while the cost per kilogram of qualified imported milk powder reduced to milk is about 2.1 yuan, much higher than the purchase price of fresh milk, so Yili will not abandon the basics whether it is banned or not, To use more expensive milk powder to produce liquid milk

Mengniu Dairy's raw milk acquisition is roughly the same as that of Yili. Sun Xianhong, deputy general manager of the company, firmly said that Mengniu company does not have the original power to replace raw milk with imported milk powder to produce liquid milk, and consumers and dairy farmers can rest assured

the production plants of Yili and Mengniu are located in two development zones on the outskirts of Hohhot, surrounded by large areas of green land. Totally enclosed milk delivery trucks are quietly queuing in the plant, waiting for delivery. It is understood that the average daily purchase of raw milk by the two companies in April this year was about 5000 tons, a sharp increase over the same period last year. According to the survey data of AC Nielsen, the liquid milk produced by these two companies accounted for 47% of the national liquid milk market in March 2005

Wang Zhengtao analyzed that whether dairy processing enterprises produce reduced milk with milk powder has little to do with the implementation of the "fresh ban". There are two main factors that determine whether enterprises make reduced milk, one is whether the milk source is sufficient, and the other is whether the cost of reducing with milk powder is low enough. The more insufficient the milk source is, the higher the milk collection cost is, the more likely it is to use relatively cheap milk powder as reduced milk

the milk source zone in China is mainly distributed in the monsoon climate zone in the middle temperate zone north of 45 ° n. this feeding zone crosses the grassland areas in North China, Northeast China and Northwest China, and concentrates more than 70% of the country's cows and raw milk. Due to natural conditions, the average milk production of cows in the south of the Yangtze River is only about half of that in the north. The purchase price of raw milk in China rises gradually from north to south, and the purchase price of raw milk in the south of the Yangtze River is sometimes about twice higher than that in the northern provinces. Where the purchase price of raw milk is high, dairy processing enterprises can choose to use milk powder to produce reduced milk. However, a few enterprises take deceptive measures to sell the so-called fresh milk with reduced milk. This involves the problem of enterprise integrity, which can not be solved by whether to mark the fresh milk or not. The government should strengthen supervision and law enforcement

al Qaeda used its strength to fight back

according to insiders, the introduction of the "fresh milk ban" was mostly caused by the problem of "fresh milk labeling"

at the beginning of 2003, after the chairman of Guangzhou Dairy Association disclosed to the media the insider of some dairy enterprises' long-term use of milk powder blended with reduced milk to sell as fresh milk, some people called on the state to implement unified labeling for fresh milk products. Then the China Dairy Association began to prepare for the establishment of the fresh milk logo

since 1999, the grassland based dairy enterprises represented by Yili and Mengniu have risen rapidly. Due to convenient storage and transportation, the base dairy enterprises carry the normal temperature milk to the South and continue to devour the original position of pasteurized milk. Its market share has now accounted for nearly 70% of the country's liquid milk (except yogurt). The market share of pasteurized milk has shrunk to about 30%

in order to compete with normal temperature milk, pasteurized milk gradually changed its name to "fresh milk" in order to distinguish it from normal temperature milk. Pasteurized milk believes that normal temperature milk loses nutrients in the process of ultra-high temperature sterilization, and the shelf life is too long to be called fresh milk at all. In June, 2003, the China Dairy Association reached an agreement with several leading pasteurized milk enterprises to launch the regulations on the management of fresh milk labeling at the end of the year. At that time, this measure was regarded as a counterattack by urban dairy enterprises mainly producing pasteurized milk. Some people predicted that urban dairy enterprises would hold high the banner of "fresh nutrition" and fight a beautiful turnaround. However, due to the fierce opposition of the "normal temperature milk" faction, the fresh milk logo was forced to run aground

subsequently, pasteurized milk sects continued to stubbornly promote the "fresh milk logo", which caused strong anxiety of Chang tenacious and warm milk sects. To the surprise of pasteurized milk, the fresh milk logo was not launched, but the "guide" of "banning fresh" was first issued by the relevant national departments, which was a blow to pasteurized milk who boasted of "fresh"

once this news was released, it caused an uproar in the industry

pasteurized milk vs normal temperature milk is better or worse

Dr. Zhiwu Zhang, director of the technical center of Yili Co., Ltd., graduated from the University of Waterloo, a famous Canadian university. She spoke slowly and said: pasteurized milk and normal temperature milk are aimed at different milk processing methods, and there is no significant difference in the main nutrients. Milk protein between the two 4 The main nutrients such as remote sensing, milk fat and calcium have little difference, but the multi vitamins in normal temperature milk have been lost to a certain extent. Pasteurized milk has less vitamin loss than normal temperature milk. Normal temperature milk has reached the aseptic standard from processing to packaging, and there is no need to refrigerate. It has outstanding advantages of safety and convenience. Pasteurized milk has high requirements for storage and transportation, and the cold chain must be continuous and complete, otherwise bacteria will multiply quickly. When purchasing milk, consumers should first find out whether the source of milk is sufficient and of good quality, and then see what process it is produced by and how its nutritional composition is, and then measure the price and brand, and choose products according to their own taste and lifestyle

internationally, pasteurized milk and normal temperature milk have their own popular areas. For example, Belgium 9 The software has the function of demonstrating historical test data. People are used to drinking normal temperature milk, while people in neighboring Netherlands like to drink pasteurized milk. Consumers choose these two kinds of milk mainly based on consumption taste and perennial habits, and there is no problem of which is better. Regulate the constant temperature milk and pasteurized milk produced by enterprises, which can be safely drunk. China's per capita dairy consumption level is still very low, and it needs pasteurized milk and normal temperature milk to jointly expand the market. China's milk sources are mainly concentrated in the north and western regions, while the main consumer markets are concentrated in coastal cities. However, China's cold chain logistics industry is not very developed. Therefore, at this stage, we should vigorously develop normal temperature milk and transport high-quality and cheap milk from remote clean pastures to consumers thousands of kilometers away in high-tech sterile packaging, which is beneficial to promoting the development of China's dairy industry, improving the quality of life of Chinese people, and improving the income of farmers and herdsmen

the highly competitive industry is facing upgrading

the fierce debate about the inflection point of "fresh milk logo" and "fresh ban" to identify the percentage of compliance conditions reflects the current situation of fierce competition in the domestic dairy market and unscrupulous competitors

in recent years, all kinds of capital tycoons are optimistic about the development prospect of China's dairy market, and have entered one after another, resulting in a fierce competition in the whole dairy industry. At present, there are more than 1500 dairy processing enterprises in China, of which only 35% have an annual sales revenue of more than 5 million yuan, and only 10 have an annual processing capacity of more than 10000 tons of fresh milk

the domestic dairy industry began a white-edged war in the market after spending a good day of money in the arms. In order to compete for market share, the costs of enterprises increase and the profit margin decreases. In 2004, the gross profit margin of dairy listed companies decreased and the cost increased during the period, which seems to indicate that China's dairy market is gradually changing from short supply to temporary oversupply

at the beginning of 2004, the price of dairy packaging materials rose, and the price of feed also rose all the way, with an increase of more than 40%, which greatly reduced the income of dairy farmers in raising cattle. Under the pressure of cattle farmers, Yili and Mengniu both slightly increased the purchase price of raw milk by 3 cents per kilogram at the beginning of this year. Compared with the losses caused by the rise in feed prices to farmers, these three cents are a drop in the bucket

but the two companies said they also have difficulties. Dairy companies connect consumers and farmers. Because the market competition is too fierce, no one dares to raise prices without authorization in order to maintain market share, and sometimes even reduce prices in order to promote sales. The price of consumers cannot rise, and the purchase price of dairy farmers at the other end can only be adjusted appropriately, otherwise the normal income of the company will be lost

there are hundreds of mature dairy products in western countries, and the types of domestic dairy products are only about 20% of those abroad, so there is a lot of room for development. The fierce competition in the domestic dairy industry is also related to the insufficient variety. Yili tried to launch new milk tablets since 2003, which was very popular in the market at that time. However, some small enterprises followed up later, and their quality could not be guaranteed, which was exposed by the relevant media. As a result, the sales volume of the milk chip market just developed by Yili fell sharply

how to treat the decline of profit margin of dairy enterprises? Zhangzhiguo, assistant general manager of Mengniu Dairy, said that after several years of rapid development, the domestic dairy industry is likely to enter a period of adjustment and reshuffle. The market is saturated at a low level, profits are reduced, the whole industry is on the verge of loss, some enterprises are forced out, and industry leaders are rallying. This is the only way for any industrial upgrading. Of course, industrial upgrading will be a painful process, consumers will enjoy more and more benefits, and the competitors in the industry - dairy enterprises and dairy farmers will pay a heavy price in the survival of the fittest

alternative stakeholders behind the fresh-keeping ban

the packaging of liquid milk is divided into two types: roof box and soft packaging. The box on the roof contains pasteurized milk, and the soft package contains normal temperature milk. The manufacturer of the roof box is American International Paper Company, which is listed in the world's top 500, and the producer of flexible packaging is another top 500 enterprise, Tetra Pak of Sweden

Tetra Pak has entered China for 25 years, accounting for 90% of the market share of sterile packaging machines and sterile packaging materials in China, 70% of which are in the dairy industry. Tetra Pak sold 11billion flexible packaging products in China in 2004, mainly to normal temperature milk enterprises represented by Yili and Mengniu. During the interview with Mengniu, Tetra Pak company was found to have a representative office in the building of Mengniu to provide one-to-one technical services for Mengniu

American International Paper Co., Ltd. entered China in 1994. They opened up the market by establishing an alliance with pasteurized milk enterprises, and successively concluded fresh milk strategic alliances with Sichuan new hope dairy, Guangming dairy, Guangdong Yantang milk, Beijing Sanyuan, etc. they also funded and sponsored the promotion activities of "fresh milk logo". They also plan to promote the sales of their products by including large-scale urban dairy enterprises in major cities in China into their alliances, so as to seize the big market of Chinese dairy packaging

factory plus farmer households are still weak

man Qiang, a farmer who signed a long-term milk supply contract with Yili, raised 30 cows with a bank loan of 300000 yuan. He has been feeling headache since last year. What bothered him was not the "fresh food ban", but the sharp rise in feed prices and the company's demand for milk

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