Is there a big event in Shaanxi's dairy industry chain? This time, the protagonist is Fuping.
On March 28, Shaanxi Province sheep dairy products traditional advantage food production area construction work promotion meeting and project signing activities held in Fuping County, deputy director of the Standing Committee of the Provincial People's Congress, provincial dairy industry chain "chain chief" Fan Weibin delivered a speech, vice governor Wang Haipeng were present.
On the same day, Shaanxi issued the "100 Billion Goat Milk Industry Action Plan" for the first time after proposing the strategy of building a whole industrial chain of 100 billion yuan dairy goats in 2018.
"Chain Length" Platform: Fuping "Three Orders in a Row"
The "Goat Dairy Promotion Meeting" that happened in Fuping County this time was obviously held at a high level.
It is understood that the promotion meeting was hosted by the Shaanxi Provincial People's Government, undertaken by the Provincial Department of Industry and Information Technology, and supported by the Ministry of Industry and Information Technology, the Ministry of Agriculture and Rural Affairs, the State Administration for Market Regulation and other central departments. In addition to the high-level attendance of government leaders, the business community also brought together representatives of key dairy enterprises, well-known e-commerce platforms and brand operation enterprises, including Yili, Mengniu, Junlebao, etc., with a total of more than 200 participants.
▲Picture: The meeting site
The choice to be held in Fuping County further clarified its key position in Shaanxi's 100-billion-level goat milk industry.
In 2023, Shaanxi Province issued the "Facility Plan for the Construction of Shaanxi Goat Milk Advantageous Traditional Food Production Area", which clarifies the positioning of Fuping Yanliang as the core area for the development of goat milk industry, Baoji Xianyang as the main production area for the development of goat milk industry, and Yulin Yan'an as the development and innovation area of sheep milk industry.
To learn more about the content of the promotion meeting, we felt a strong sense of "integration and improvement" from Fuping.
The first is to sign projects to release the demand for "industrial upgrading".
The three projects that have been signed this time are all local entities in Fuping, and they all aim at their own industrial upgrading by "joining hands with industry heads", which corresponds to the content of the "Plan" and is an important measure to promote the goat milk industry to supplement the chain, strengthen the chain and extend the chain, including:
Boling Dairy extends cheese processing downstream. Although the two sides have not disclosed the details 600882 of the cooperation, according to the official public account information of Shengtang Dairy, the two sides have signed a contract on the co-prosperity cooperation project of China's cheese industry in September 2022 to jointly create special cheese products.
Red Star Meiling obtains R&D results from universities. The core raw materials of goat milk in mainland China have long relied on imported "stuck neck", goat whey powder is the main raw material, and the College of Animal Science and Technology of Northwest A&F University and Red Star Meiling signed the "Technical Achievement Transformation Agreement" on the project of "extracting goat milk whey technical achievements".
▲Figure: Youran Animal Husbandry's "County Animal Husbandry Service Center" located in Ningcheng County, Inner Mongolia
The county government obtains comprehensive breeding technology from the leader. Fuping County Agriculture and Rural Bureau signed a contract with Youran Animal Husbandry (09858), the world's largest raw milk supplier under Yili Co., Ltd. (600887), Yuanxing Feed, which will introduce the latter's high-quality dairy goat feed products and breeding technology throughout the life cycle, and jointly promote the establishment of a "county animal husbandry service center" in the local area, apparently to improve the quality of local raw milk.
The second is to coordinate and integrate scientific and technological innovation resources.
The Shaanxi Provincial Sheep Dairy Innovation Center launched on the same day also mentioned in the "Plan" that the center is voluntarily combined and independently combined by various innovative subjects such as enterprises, scientific research institutes, universities, etc., and the leading enterprise is the "chain master" of the Shaanxi dairy industry chain Red Star Meiling, and the launch of the provincial manufacturing innovation center will provide important technical support for many dairy enterprises in the region.
In this way, Fuping County has taken the lead in preparing for Shaanxi's 100 billion goat milk industry.
Industry consolidation: Local players have taken the lead
In a more real market environment, mergers and acquisitions between dairy enterprises once "soared".
In order to further seize the milk source and market, a large number of dairy enterprises have improved the efficiency of the industrial chain through integration. From 2019 to 2020, the focus of industry consolidation was on animal husbandry and milk sources, and from 2020 to 2021, it mainly integrated downstream enterprises, and in 2019, the peak period of industry mergers and acquisitions, 19 of the top 20 companies in China's dairy industry participated in more than 75 mergers and acquisitions, joint ventures, strategic alliances or asset disposals.
The above actions have naturally also been transmitted to Shaanxi, which accounts for more than 90% of the country's goat milk powder production, and in our records, only China Feihe (06186) has repeatedly exerted its strength in Shaanxi.
The first time was to cut into the high-growth goat milk powder track. In July 2021, we published an article entitled "Feihe Dairy's Acquisition of "Shaanxi Little Sheep": For the sake of "Cattle and Sheep at the Same Time"?", which recorded that Feihe, which has the largest market share of infant milk powder in China, acquired Xiaoyang Miaoke (formerly Shaanxi Longxian Dairy Factory), a veteran goat milk company in Shaanxi, again after 7 years, with the purpose of making up for the lack of goat milk powder products at that time.
The second is to seize the milk source of large-scale pastures in the upstream. Only 4 months later, in the article "Competing for "Sheep" in Other Cities: Northeast People Bought Shaanxi's "Asia's Largest"", we recorded that Feihe acquired the largest dairy goat breeding base in Asia owned by Shaanxi Green Energy Ecology at a consideration of 131 million yuan through its Hong Kong-listed company Original Ecological Animal Husbandry (01431), and went straight to the milk source.
If you can't join it, local enterprises will undoubtedly get broader development prospects when they enter the leading industrial layout, and on the other hand, Shaanxi has also opened regional internal integration under the wave of capital.
The most significant action stems from the establishment of Shaanxi's first county-level rural revitalization industry fund in Fuping in February 2022, targeting the entire dairy goat industry chain in Fuping County. The original investors were Fuping Fudan Industrial Investment and Fuping Industrial Investment, two local state-owned asset platforms, Shaanxi Shengtang Dairy, a leading enterprise of Fuping goat milk, and Jianyin International, a financial capital, and Jianyin International Asset Management Co., Ltd. served as the executive partner. (See: "Shaanxi's First "Township Zhen Fund": The "Investment Bank Thinking" Behind 100 Million)
▲Figure: Shengtang Dairy products
In fact, at the same time that the "Fuping Fund" launched the first project of Shaanxi Boling Dairy, Xu Changcheng, the actual controller of Shengtang Dairy, and He Wen, a related party, won 84% of the equity of Shaanxi Boling Dairy held by Wang Yan, another related party, although it is not a typical acquisition, but since then, Shaanxi Boling Dairy has been clearly included in the second phase of the Shengtang Dairy project. And we believe that the future action of "Fuping Fund" is much more than that.
In addition, Shaanxi goat milk integration cases include Baoji Ainente Nutrition Dairy Co., Ltd.'s acquisition of upstream Shaanxi Ainite Dairy Co., Ltd. (formerly known as Baoji Xueer Dairy) in 2017, and Shaanxi Qinlong Tianrun Holding Group's acquisition of Shaanxi Qinlong Dairy Group from Shengtang Dairy in 2015.
In the cruel competition in the market, Shaanxi goat milk enterprises have found a capital path to become bigger and stronger.
The "chain master" attacked: Fuping dairy enterprises went into battle
The world's goat milk looks at China, China's goat milk looks at Shaanxi, and Shaanxi goat milk looks at Fuping.
Returning to today's main body of Fuping, resource endowment is its greatest historical advantage. Fuping County dairy goat breeding has a history of more than 100 years, has built 4 dairy goat industry demonstration parks, the development of 100,000 breeding towns 2, 880,000 dairy goats, an annual output of 235,000 tons of goat milk, ranking first among the top 25 dairy goat breeding bases in China, the industrial scale ranks first in the country, and the output value of the whole industry chain reaches 15 billion yuan.
In order to promote the "in-depth development" of the goat milk industry, Fuping has taken goat milk as a "pillar industry".
In the local "14th Five-Year Plan", the government made it clear that dairy goats should be built into a 10 billion industrial cluster, and at the implementation level, the "top leader" personally took charge of the establishment of a leading group for the high-quality development of the whole dairy goat industry chain, and compiled and issued a high-standard "Fuping County Dairy Goat Industry Development Plan (2020-2030)" and "Opinions on Comprehensively Promoting the High-quality Development of the Whole Dairy Goat Industry Chain".
▲Figure: Fuping issued a policy to support dairy goats
Nowadays, the Fuping dairy goat industry has initially formed a whole industry chain development pattern integrating improved breeding, large-scale breeding, intelligent processing, modern circulation, and cultural and tourism integration. Under the downward trend of national dairy product consumption, Fuping goat milk powder still achieved a good sales growth of 31% in 2023.
When it comes to the development of the whole industrial chain of dairy goats, we have to mention that Fuping is the only "chain master" enterprise selected as the key industrial chain of dairy products in Shaanxi, because the role of "chain master" in the construction of the industrial chain is indispensable.
Readers who are familiar with the dynamics of Shaanxi's capital market know that Red Star Meiling, which is expected to be the "first share of domestic goat milk powder", once launched an attack on A-shares in 2019, although the results are well known, but what shows the courage of entrepreneurs is that they said to the media: "I will not stop expanding production because of the failure of listing."
More importantly, at the "Fuping Conference", Red Star Meiling once again showed the responsibility and ambition of the chain owner, and General Manager Wang Lijun put forward a clear plan: by 2025, around the construction of the dairy goat industry cluster of 30 billion Fuping core area, by focusing on building four central engines, to achieve self-built and self-controlled dairy goats 100,000, to achieve sales of 5 billion within 5 years, to the world's first goat milk enterprise in the whole industry chain to accelerate progress.
▲ Figure: The content of the report of Red Star Meiling
After all, around 2019, Red Star Meiling drove tens of thousands of farmers in Fuping to directly engage in dairy goat breeding, and the per capita annual income in the core breeding area increased by tens of thousands of yuan.
The demonstration of the chain owner naturally drove the industry to be more active.
For example, Shaanxi Xiangxiang Dairy invested 360 million yuan to build a fresh goat milk production project with an annual processing capacity of 100,000 tons, which represents the highest level of liquid goat milk processing capacity in the country, Jinniu Dairy invested 250 million yuan to build the second phase of the dairy gambling golden sheep project, and Meikegaote Dairy invested 68 million yuan to build an upgrading and expansion project.
Financial lollipop expectation: Fuping, as the "important town" of Shaanxi goat milk, has a strong resource advantage on the one hand, and a high-quality leading body on the other, and is optimistic in the face of Shaanxi's 100 billion-level goat milk industry goal.