Providing market research reports, industry analysis, company profiles and country reports for strategic planning, competitive intelligence, marketing and business research.
Search for Market Research Reports:    

China Dairy Industry Investment Research Report

Published by: Beijing Orient Agribusiness Consultant Ltd.

Published: Jul. 1, 2007 - 153 Pages


Table of Contents


1. Analysis of Dairy Farming Industry

1.1 Overall Situation of Raw Milk Market

1.1.1 Dairy Cattle Inventory

1.1.2 Dairy Cattle Yield

1.1.3 Milk Produciton

1.2 Characteristics of Regional Layout of Raw Milk Production

1.2.1 Main Provinces of Raw Milk Production

1.2.2 Market Shares of Raw Milk Producing Regions

1.2.3 Extension of Raw Milk Production towards Non-traditional Regions

1.3 Organization and Operation Mode of Raw Milk Production

1.4 Comparison of Input and Output between Dairy Farming and Crop Production and Other Types of Animal Farming

1.4.1 Comparision of Per Capita Possession Level between Milk and Other Agricultural Products, Animal Products and Acquatic Products

1.4.2 Comparison of Raw Milk Cost with International Market

1.5 Investment of Dairy Farming

1.5.1 Source of Investments

1.5.2 Scale of Investments

1.6 Key Factors Affecting Development of Dairy Farming

1.6.1 Driving Force

1.6.2 Restraints

1.7 Trend of Dairy Farming in Coming 5-15 Years

1.7.1 Overall Development Direction

1.7.2 Concrete Indices

2. Analysis of Dairy Processing Industry

2.1 Categories and Structure of Dairy Products

2.2 Quantity of Dairy Processing Companies and Relevant Scales

2.2.1.Quantity of Scaled Dairy Processing Companies

2.2.2 Regional Layout of Companies of Different Scales

2.3 Growth Level of Dairy Industry and Features of Life Cycle

2.3.1 Growth of Dairy Industry

2.3.2 Features of Life Cycle of Dairy Industry

2.3.3 Thresholds of Dairy Industry

2.4 Utilization Rate of Production Capacity of Dairy Compnies

2.4.1 Efficiency of Production Capacity

2.4.2 Key Factors Affecting Efficiency of Production Capacity

2.5 Capital Operation and Profit Generation of the Industry

2.5.1 Current Status of Capital Investment

2.5.2 Overall Profit Generation Level of the Industry

2.5.3 Comparision of Profit Generation Level of Dairy Companies of Different Scales

2.5.4 Comparision of Profit Generation Level of Dairy Companies of Different Economic Types

2.6 Key Factors Affecting Development of the Dairy Industry

2.6.1 Driving Force

2.6.2 Restraints

2.6.3 Trend of Dairy Processing in the Coming 5-15 Years

3. Analysis of Dairy Market

3.1 Relevant Economic Environment of the Dairy Market

3.2 Overall Scale of Milk Market

3.3 Scales of Dairy Markets of Different Regions

3.3.1 Current Status

3.3.2 Potential

3.4 Growth Level of Segmented Dairy Market

3.4.1 Liquid Milk

3.4.2 Solid Dairy Products

3.5 Import and Export of Dairy Products

3.5.1 Overall Dairy Trade

3.5.2 Import

3.5.3 Export

3.6 Market Competition of Dairy Industry

3.7 Growing Trend of Dairy Market in the Coming 5-15 Years

4. Analysis of Dairy Consumption

4.1 Overall Consumption Demand

4.1.1 Consumption Structure

4.1.2 Per Capita Level

4.2 Key Factors Affecting Dairy consumption

4.2.1 Driving Force

4.2.2 Restraints

4.3 Trend of Dairy Conumption Demnd in the Coming 5-15 Years

5. Top 10 Dairy Companies

5.1 Yili

5.1.1 Basic Situation

5.1.2 Product Composition and Market Share

5.1.3 Trend of Stock Price

5.1.4 SWOT Anaysis

5.1.5 Value Chain Analysis

5.1.6 Suggestion on Investment

5.2 Mengniu

5.2.1 Basic Situation

5.2.2 Product Composition and Market Share

5.2.3 Trend of Stock Price

5.2.4 SWOT Anaysis

5.2.5 Value Chain Analysis

5.2.6 Suggestion on Investment

5.3 Sanlu

5.3.1 Basic Situation

5.3.2 Product Composition and Market Share

5.3.3 SWOT Anaysis

5.3.4 Value Chain Analysis

5.3.5 Suggestion on Investment

5.4 Bright

5.4.1 Basic Situation

5.4.2 Product Composition and Market Share

5.4.3 Trend of Stock Price

5.4.4 SWOT Anaysis

5.4.5 Value Chain Analysis

5.4.6 Suggestion on Investment

5.5 Wandashan

5.5.1 Basic Situation

5.5.2 SWOT Anaysis

5.5.3 Suggestion on Investment

5.6 Sanyuan

5.6.1 Basic Situation

5.6.2 Product Composition and Market Share

5.6.3 Trend of Stock Price

5.6.4 SWOT Anaysis

5.6.5 Suggestion on Investment

5.7 Yinqiao

5.7.1 Basic Situation

5.7.2 Product Composition and Market Share

5.7.3 SWOT Anaysis

5.7.4 Value Chain Analysis

5.7.5 Suggestion on Investment

5.8 New Hope

5.8.1 Basic Situation

5.8.2 Product Composition and Market Share

5.8.3 SWOT Anaysis

5.8.4 Value Chain Analysis

5.8.5 Suggestion on Investment

5.9 Nestle (China )

5.9.1 Basic Situation

5.9.2 Product Composition and Market Share

5.9.3 SWOT Anaysis

5.9.4 Value Chain Analysis

5.9.5 Suggestion on Investment

5.10 Dumex

5.10.1 Basic Situation

5.10.2 SWOT Anaysis

5.10.3 Value Chain Analysis

5.10.4 Suggestion on Investment

6. Analysis of Investment Opportunities

6.1 Growth of Market Capacity of Dairy Products

6.2 Maturity of Links of Value Chain of the Industry

6.2.1 Raw Milk Production

6.2.2 Dairy Processing

6.2.3 Sale of Dairy Products

6.2.4 Summery

6.3 Profit Distribution of Links of the Industrial Chain

6.3.1 Raw Milk Production

6.3.2 Dairy Processing

6.3.3 Sale of Dairy Products

6.3.4 Summery

6.4 Competitivenss of Links of the Industrial Chain

6.4.1 Raw Milk Production

6.4.2 Dairy Processing

6.4.3 Sale of Dairy Products

6.4.4 Summery

6.5 Comparison of Investment Opportunity of the Industrial Chain

6.5.1 Possiblilities of Invsetment

6.5.2 Choice of Investment Links

7. Suggestions on Investment Route in Dairy Industry

7.1 Investments by Domestic Companies (case studies)

7.1.1 Investments

7.1.2 Experiences

7.1.3 Features of Investments

7.2 Investments by Foreign Companies (case studies)

7.2.1 Investments

7.2.2 Experiences

7.2.3 Features of Investments

7.3 Summery

7.3.1 Restructuring of the Value Chain of the Industry

7.3.2 Affluent Capital

7.3.3 Joint Operation, Exploration of Joint Advantage

7.3.4 Choice on Links

7.4 Design of Optimal Investment Route

7.4.1 Target of Investment

7.4.2 Mode of Investment

7.4.3 Expected Financial Status

7.4.4 Withdrawl of Risk Capital

8. Investment Risks and Countermeasures

8.1 Market Risk

8.2 Policy Risk

8.3 Nature Risk

8.4 Other Risks




Lists of Tables and Figures

Table 1-1 Contribution from Dairy Cattle Inventory and Yield to Gross Milk Production

Table 1-2 Market Share of Main Producing Regions of Raw Milk 8

Table 1-3 Comparison of Per Capita Possession of Agricultural Products, Animal Products and Aquatic Products between China and the World Average

Table 1-4 Differences of Milk Price Among Different Countries

Table 1-5 Comparision of Milk Production Cost between Countries (based on 100kg standard milk (ECM))

Table 1-6 Comparison of Competitive Countries in Milk Production Cost in 2004

Table 2-1 Classification of Dairy Products by China Dairy Indutry Association

Table 2-2 Quantity of Scaled Dairy Procesing Companies and Their Prooprtions

Table 2-3 Regional Layout of Dairy Companies of Different Scales (till the end of December 2005)

Table 2-4 Growing Trend of Dairy Industry 2000-2005

Table 2-5 Changes of Assets of Dairy Industry 2001-2005

Table 2-6 Trend of Profit Generation of Dairy Industry 2000-2005

Table 2-7 Comparison of Profit Generation Ability of Dairy Companies of Different Scales 2005

Table 2-8 Comparison of Profit Generation Ability of Dairy Companies of Different Economic Types 2005

Table 3-1 Life Improvement of Urban and Rural Residetns in 10th Five Year Plan Period

Table 3-2 Equilibrium of Milk 2003-2005

Table 3-3 Trend of Dairy Market of Different Regions 2005

Table 3-4 Growing Trend of Market Capacity of Other Dairy Products 2003-2005

Table 3-5 Import Structure of Dairy Products 2003-2005

Table 3-6 Export Scale and Structure of Dairy Products 2004-2005

Table 5-1 Main Economic Indices of Yili 2001-2005

Table 5-2 Main Economic Indices of Mengqiu 2003-2005

Table 5-3 Main Economic Indices of Sanlu 2000-2005

Table 5-4 Main Economic Indices of Bright 2001-2005

Table 5-5 Main Economic Indices of Wandashan 2000-2005

Table 5-6 Main Economic Indices of Sanyuan 2001-2005

Table 5-7 Main Economic Indices of Yinqiao 2000-2005

Table 5-8 Main Economic Indices of New Hope Agriculture 2001-2005

Table 5-9 Performance of Dairy Sector of New Hope 2002-2005

Table 5-10 Main Economic Indices of Nestle (China) 2000-2005

Table 5-11 Main Economic Indices of Dumex 2000-2005

Table 6-1 Growth of Dairy Consumption 1999-2005

Table 6-2 Forecast on Demand for Dairy Products 2010-2015

Table 6-3 Dairy Cattle Inventory, Milk Production and Growth 1995-2005

Table 6-4 Proportion of Economic Index of Dairy Companies of Different Scales in the Total of the Industry 2005

Table 6-5 Average Gross Profit Margin of Raw Milk Produciton by Different Farming Modes 2001-2005

Table 6-6 Proportion of Income from Liquid Milk in Revenue of Dairy Core Sector 2003-2005

Table 6-7 Gross Profit Margin of Core Business of Representattive Liquid Milk Producers 2003-2005

Table 6-8 Gross Profit Margin of Representative Yogurt Producers 2003-2005

Table 6-9 Gross Profit Margin of Representative Milk Powder Producers 2003-2005

Table 6-10 Gross Profit Margin of Representative Milk Drinks Producers 2003-2005

Table 6-11 Gross Profit Margin and Profit Margin of Sales Revenue of Dairy Processing Compnies 2002-2005

Table 6-12 Comparison Sales Revenue of Leading Enterprises against Same Period of the Previous Year 2002-2005

Table 6-13 Concentration Level of Liquid Milk Market 2005

Table 6-14 Concentration Level of Yogurt Market 2005

Table 6-15 Concentration Level of Milk Powder Market 2005

Table 6-16 Concentration Level of Milk Drinks Market 2005

Table 6-17 Ratio of Cost of Dairy Sector of Litsed Dairy Processing Companies 2003-2005

Table 6-18 Ratio of Average Operational Cost of Dairy Industry 2003-2005

Table 7-1 Investments in Raw Milk and Processing of Yili since 2003

Table 7-2 Gross Profit Margin of Yili 2003-2005

Table 7-3 Gross Profit Margin of Dairy Industry 2001-2005

Table 7-4 Growing Indices of Yili 2002-2005

Table 7-5 Investments in Nestle Shuangcheng

Table 7-6 Gross Profit Margin of Nestle Shuangcheng 2000-2005

Table 7-7 Growing Indice of Nestle Shuangcheng 2001-2005

Table 7-8 Comparison of Various Stages of Life cycle of Innovative Products at Mono Link of Multiple Link

Table 7-9 Composition of Competitiveness of Dairy Companies

Table 7-10 Cost-benefit Ratio of 4 Kinds of Raw Milk Production Methods 1995-2005

Table 7-11 Dairy Cattle Yield of Different Farming Scales 2004

Table 7-12 Cost of Specialized Farming Houdeholds in Suburbs 2002-2004

Table 7-13 Forecasted Cost and Benefit

Table 7-14 Financial Sensitiveness of Investment (gross profit margin before tax)

Table 7-15 Comparison of Various Kinds of Withdrawls of Risk Investment




Fig 1-1 Growing Trend of Dairy Cattle Inventory 1995-2005

Fig 1-2 Changes of Dairy Cattle Yield 1995-2005

Fig 1-3 Growing Trend of Gross Production of Dairy Cattle 1995-2005

Fig 1-4 Layout of Raw Milk Production by Major Provinces

Fig 1-5 Raw Milk Produciton Extending from Traditional to Non-traditionl Producing Regions 2000-2005

Fig 3-1 GDP and Growth in 10th Five Year Period

Fig 3-2 Comparison of Provincial GDP and Per Capita GDP 2005

Fig 3-3 Comparison of Income of Urban and Rural Residents of Different Provinces 2005

Fig 3-4 Bank Savings of RMB by Urban and Rural Residetns and Growth in 10th Five Year Period

Fig 3-5 Per Capita Food Expenditure of Urban Residents of Different Provinces 2005

Fig 3-6 Composition of Liquid Milk 2000-2005

Fig 3-7 Output and Growth of UHT Milk 2000-2005

Fig 3-8 Output and Growth of Pasteurized Milk2000-2005

Fig 3-9 Output and Growth of Yogurt 2000-2005

Fig 3-10 Output of Solid Dairy Products and Its Proportion in Production of Dairy Products 1996-2005

Fig 3-11 Output of Solid Dairy Products of Variou Regions 2000-2005

Fig 3-12 Output of Solid Dairy Product of Main Producing Regions 2003-2005

Fig 3-13 Output of Milk Powder and Its Proportion in Production of Solid Dairy Products 1996-2005

Fig 3-14 Output of Milk Powder and Its Proportion in Production of Dairy Products 1996-2005

Fig 3-15 Composition of Milk Powder Output 1999-2005

Fig 3-16 Trend of Gross Import of Dairy Products 1995-2005

Fig 3-17 Trend of Volume and Value of Import of Milk Powder 1995-2005

Fig 3-18 Trend of Volume and Value of Import of Milk Powder 1995-2005

Fig 4-1 Composition of Dairy Consumption Volume of Urban Residents 2001-2005

Fig 4-2 Per Capita Fresh Dairy Conumptoin Volume of Urban Residents 1992-2005

Fig 4-3 Per Capita Milk Powder and Yogurt Consumption Volume of Urban Residents 1992-2005

Fig 5-1 Trend of Stock Price of Yili 2004-2006

Fig 5-2 Trend of Stock Price of Mengniu 2005-2006

Fig 5-3 Trend of Stock Price of Bright 2004-2006

Fig 5-4 Trend of Stock Price of Sanyuan 2004-2006

Fig 6-1 Per Capit Dairy Consumption and Growth from Same Period Previous Year 1990-2005

Fig 6-2 Composition of the Value Chain of Dairy Industry

Fig 6-3 Commercial Milk Output and Growth from Same Period Previous Year 1998-2005

Fig 6-4 Trend of Importation of Milk Powder 1995-2005

Fig 6-5 Output of Dairy Products and Growth from Same Period Previous Year 2000-2005

Fig 6-6 Quantity of Dairy Processing Companies and Growth from Same Period Previous Year First Half Year 2003-2006

Fig 6-7 Deficit of Scaled Dairy Processing Companies 2002-2005

Fig 6-8 Profit Margin of Dairy Industry 2003-2005

Fig 6-9 Retail Price Index of Milk and Procssed Products 1995-2004

Fig 6-10 Sales Revenue and Growth of Dairy Industry 2001-2005

Fig 6-11 Growth of Sales Revenue of Leading Dairy Enterprises 2003-2005

Fig 6-12 Distribution of Profit at Value Chain of Liquid Milk Industry

Fig 6-13 Changes of Market Shares of Liquid Milk Brands 2004-2005

Fig 6-14 Trend of Market Share of Yogurt Brands 2003-2005

Fig 6-15 Comparison of Market Share of Small-pack Milk Powder Brands 2005

Fig 6-16 Changes of Market Share of Major Brands of Milk Drink 2003-2005

Fig 6-17 Illustration of Circulation Channels of Milk Product

Fig 6-18 Competition of Dairy Industry Based on Diamond Mode Amendment

Fig 7-1 Comparison of Gross Profit Margin between Yili and Dairy Industry 2002-2005

Fig 7-2 Comparison of Gross Profit Margin between Nestle Shuangcheng and Dairy Industry 2001-2005

Fig 7-3 Analysis of Investment Sensitiveness (gross profit margin before tax)

Abstract

From the perspective of the life cycle of the dairy industry, various links of the dairy industrial chain in China embody different features: dairy farming is still at the preliminary stage, the dairy processing industry is at the transitional stage from growing up to maturing, and the marketing of dairy products is maturing.

In view of the development stage of the overall dairy industry, China’s dairy industry is still expanding, witnessing fast enlargement of market scale and constant upgrading of the market structure.

Spurred by the policy promotion and consumption demand, the annual average growth of dairy cattle inventory was 20.20% from 2000-2005, and the annual average growth of gross milk production during the same period was 28.53%. In 2005, the dairy cattle inventory was 12.16 million, gross milk production, 27.354 million tons. The improvement of milk yield has limited impact on the growth of the gross milk production, yet the increase of the gross milk production in the coming 5-10 years in China shall depend more and more on the heightening of yield.

Raw milk production is mainly in the provinces in the North, yet it is extending to the non-traditional producing regions along with the gradual formulation of the national processing layout of large dairy companies.

Dairy farming has been shifting from the previous smallholder mode to concentrated dairy farming areas and scaled farms, and this transition has significance on the improvement of raw milk quality, the improvement of the farming efficiency and the heightening of the overall quality of dairy farming. Yet, the transition from traditional to modern farming modes demands concurrent development of relevant service industry and a big amount of fund.

In view of the development potential, the per capita possession volume of agricultural and animal products of the Chinese residents is up to or close to the world average level, only milk is an exception. The per capita possession volume of milk of the Chinese residents is 1/2 of the Asia average, or 1/5-1/4 of the world average. Comparing with the raw milk cost at the international market, raw milk from China enjoys certain competitiveness, and in this regard, China is likely to become a potential raw milk supplier in the world.

The per capita milk consumption of the Chinese residents is foreseen to reach the Asia average level in the coming 5-15 years. The per capita consumption of rural residents and low-income urban residents shall move up remarkably. There shall be more diversified dairy products at urban markets, the proportion of the consumption of functional dairy products and high value-added dairy products shall become larger and larger, and dairy products shall be popular food among urban and rural residents.

For investment in any of the three links of the value chain of the dairy industry, there is possibility of generating profit. In general, there are the following four methods: to hold shares of large leading enterprises, to go in for strategic cooperation and to share the high profit of the leading players; to hold shares of dairy companies enjoying substantial growth, and to share the profit from the fast growth of the dairy industry; to invest in local leading companies, and to utilize their regional advantages; to be an “expert-type” small company which enjoys the following advantages: precise target market and short exploration period; the optimized market classification and marketing coordination organization makes work more efficient; successful reorganization of the scattered resource on the basis of using the self brand value and products, and there is realization of integrated management. However, considering all elements, the profit margin is more prominent from investing in raw milk production link.

Get Full Details About This Report >>
US: 800.298.5699
Int'l: +1.240.747.3093
Buy this Report
Price and Delivery Options
Search Inside Report


 

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 160,000 market research reports, company profiles and country profiles from over 600 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.

 

© MarketResearch.com 2008