Liu Chao, Dairy Association: Grasp the pulse of the times and promote the sustainable development of the dairy industry

Reporter of this newspaper Jiao Yue

2021 is the first year of the 14th Five-Year Plan. The dairy industry, which involves the national plan, after withstanding last year's epidemic examination, stands at a new historical node, how to open a new situation, seek a new chapter, and create a "new engine" for the high-quality development of China's dairy industry has become the top priority for the industry and enterprises.

On October 22, 2021, at the 4th China Dairy Capital Forum hosted by Securities Daily, Liu Chao, vice chairman and executive deputy secretary general of the China Dairy Industry Association, said that during the "13th Five-Year Plan" period, China's dairy industry has made remarkable achievements in processing technology and equipment, enterprise management, regulatory standards, product quality and safety, product quality upgrading and strengthening the construction of dairy special areas. China's dairy industry has become a food manufacturing industry with the world's advanced level of modernization, and this good situation has continued to this day.

According to the data of the National Bureau of Statistics, from January to July 2021, the output of liquid milk in China increased by 14.61% year-on-year, the output of dairy products increased by 8.53% year-on-year, the national dairy processing sales revenue increased by 14.22% year-on-year, and the total profit increased by 39.09% year-on-year, and the increase in sales revenue was far greater than the increase in products. "This shows that after the epidemic, the consumption upgrade is obvious, and the overall products of enterprises tend to be high-end." Liu Chao said that from January to August this year, because of strong market demand, China's dairy imports maintained rapid growth. A total of 2.8545 million tons of various dairy products were imported, an increase of 31% year-on-year. The import value increased by 17.7% year-on-year, and the converted fresh milk increased by 28.8% year-on-year, and the continuous growth of imported products shows that China's dairy market demand is strong and has great potential.

Judging from the semi-annual report performance of listed dairy companies, the overall growth momentum of the industry is strong, most listed dairy companies have achieved double-digit growth, and some dairy companies have a growth rate of more than 50%. Yili, Mengniu, Feihe, Guangming, New Hope Dairy, Ausnutria, Miaoke Lando and other enterprises have achieved good results.

Liu Chao said that China has built a moderately prosperous society in an all-round way and is moving towards the goal of comprehensively building a socialist modern power, which has laid a solid material foundation for the development of China's dairy industry, added a cup of milk to a healthy China, and fulfilled the people's yearning for a better life. In addition, the advent of the era of great health has also laid a social foundation for the development of the dairy industry. Covid-19 has changed the way we live, and people are paying more attention to healthy nutrition. In the year 2020, the national health literacy has increased by 4 percentage points, which shows that everyone pays attention to their own health, pays attention to their own nutrition, and knows that by drinking more milk, they can improve their body's immunity.

However, with the rapid development of China's dairy industry, the deep-seated problems accumulated in the development have become more and more prominent, such as high raw milk prices, slowing growth of dairy product production, unbalanced regional development, coexistence of structural excess and shortage in the dairy market, and increasing dependence on the international market.

Liu Chao said that in the face of practical problems, the dairy industry should take precautions, actively layout, and strengthen confidence in the development of the industry: First, unswervingly take the road of the development of the whole industrial chain, vigorously develop dairy farming, quickly increase the proportion of its own milk sources, and ensure the stability of the industrial chain of the supply chain; second, take win-win cooperation as the guide, promote the stable development of the industry, advocate and support processing enterprises and dairy farms to carry out "vertical" alliances, and increase the ability to resist risks with the advantages of the industrial chain; third, optimize the product structure with scientific and technological innovation, and enhance the technical content of products Fourth, further promote industrial upgrading, improve laws and regulations, for new raw materials, new categories, new processing technology, formulate corresponding standards, use standards to escort the safety of products and the upgrading of the industry, and promote the green, low-carbon and intelligent development of the industry; fifth, strengthen the cultivation of the characteristic milk market, enrich the varieties of dairy products, and meet the needs of market segmentation; sixth, strengthen the double-cycle layout and accelerate the process of internationalization. Continue to actively explore overseas markets and build internationally renowned brands.

"In recent years, Yili, Mengniu, Feihe, Guangming, Shengyuan, Ausnutria and other enterprises that have 'gone global' have invested in building factories or acquired enterprises in Oceania, Europe, the Americas, Southeast Asia, the Middle East and other places, using foreign resources for product production, replenishing the domestic market at the same time, relying on foreign factories to enter the international market, and gradually enhancing the international popularity and influence of the company's brand." Liu Chao believes that the "14th Five-Year Plan" period is an important development period for China's social and economic development and economic structural changes, we must take advantage of the social changes and development opportunities that have not been encountered in a hundred years, scientifically analyze the problems existing in China's dairy industry, cope with the opportunities and challenges of industry development, grasp the direction of industry development, establish a sustainable development innovation system, and continuously promote China's progress from a dairy country to a strong country.

(Editing by Shangguan Monroe)