The past three decades have seen both dairy production and dairy consumption in China soar, averaging a 12.8 percent annual growth rate since 2000. China’s cheese market has nearly quadrupled in value since 2008, rising from RMB 668 million ($107 million) to RMB 2.7 billion ($433 million) this year, according to consultancy Euromonitor, which forecasts that it will double to RMB 5.3 billion by 2018. Dubbed the “white gold rush,” the overall dairy industry in China was worth $40.6 billion last year, compared with only $20.7 billion in 2008.
To understand the cause of this rapid growth in recent years, we must take a look at the history of the Chinese dairy industry.
Contrary to popular belief, dairy products have a long history in China, especially in the cities that were open to foreigners in the late 1800’s. Dairy products are seen as nutritious, healthy foods, but their consumption had been hampered until recently by high prices, absence of refrigerated transportation, and lack of household refrigeration.
Since the economic reforms of 1978, investments in technology have increased the feasibility of supplying dairy products. First, introduction of modern processing technologies, such as ultra-high temperature pasteurization, had greatly expanded the shelf life. This enabled transportation of the products from the farms and production facilities to the population. Second, the import of dairy cattle and advanced feeding and management practices from the West dramatically increased the productivity of the dairy operations. From 1996 to 2002, China doubled its milk production, surpassing Australia and Japan as the third largest milk producer in Asia. Lastly, the average Chinese income increased 400% over two decades. In 2002, 87% o...
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...overnment wants to strengthen the Chinese dairy industry's reputation and fend off competition from foreign companies who have been grabbing market share since 2008.
The domestic dairy producers are now looking for ways to produce locally to meet the current as well as future dairy consumption demand which is expected to increase 38 percent by 2022. Domestic dairy producers like China Mengniu Dairy, Yili and Bright Dairy are spending billions of dollars to build and invest in mid-to-large-scale farms. As a Mengniu spokesman said, "By next year, 100 per cent of our raw milk used in our products will come from the farms we built or work with."
However, they lack the technology to produce efficiently. Chinese farm conditions are very similar to Israeli ones – not enough water and too much heat. Yet Israeli cows produce three to four times more milk than Chinese cows
Unfortunately, this business model was unsustainable due to the increasing input costs of farming and the low prices the Hatcher’s were receiving for their milk. All other local dairies faced the same issues. As a result, a federal buy-out
The essay establishes the existing United States regulations, which is a huge result of many medical incidents which the federal and state government analyzes for the safety of the people, whom have many concerns that are placed upon raw milk cheese. Bilger also reflects upon the growing market of raw milk products, as well as the potential re-appearance for upcoming dairy farms and artisanal cheese manufacturers, which will at least justify the government cost-charge and cost-benefit analysis examining the safety of all the raw milk
Milk today is not what it used to be. Only three percent of the U.S. population regularly consumes raw, unprocessed milk regularly (CDC). Before the process of pasteurization, cultures throughout history thrived on raw milk. In America, the first cows were brought to the Jamestown colony in 1610. Cottage dairying in America started in 1620, with the large importation of cattle from Europe. As the nation moved west, settlers sought pastures and room for more cattle. Most families had a family cow, and even small dairies were family-owned. During this time, cows fed off lush, green pastures. Ron Schmid observes, in his Untold Story of Milk, “Milk in America at the beginning of the nineteenth century was of the same character as the milk that had nurtured humanity for many thousands of years . . . This was soon to change, as the growth of the cities would lead to changes in milk that would have devastating effect...
The idea of pasteurizing milk bagan in the 1920s, and later became an aspect of everyday life in the 1950s. Milk that has undergone this process is normally prefered since it is sterilized, therefore lowering the chance of human illness. However, it’s not the 1950s anymore, and the idea of pasteurizing milk has lost its luster for the people that now prefer raw milk. Unlike the milk that most Americans consume, raw milk has not been pasteurized, or quickly heated to a high temperature to kill harmful bacteria. In raw milk, these bacterias haven’t been removed, leaving people at risk. E. Coli, salmonella, and listeria are only some of the bacteria that raw milk carries, all of which can cause sickness, or even death. Common affects of consuming raw milk are diarrhea, stomach cramping, and vomiting, but it's the rare ones: kidney failure,paralysis, and death that causes raw milk to be illegal in half of the states and illegal to carry over state lines in its final form. Nevertheless, people still actively seek out and consume raw milk because they believe its nutritional values to be greater. Controversies surround this topic on whether organic food
Jordan, Miriam. “Got Workers? Dairy Farms Run Low on Labor” Wall Street Journal 30 5 2009:
... The routine conversation that is usually conducted when we gather together is concerning the inflated price of milk of which has transpired within the last ten years. With possessing a small child the need for the consumption of milk is not considered an optional luxury but a necessary commodity for small children and their overall development. With inflated prices on necessary commodities, such as milk, for many young families produces an enormous financial burden with monthly demands of milk. Dealing with this issue of inflation is an extremely difficult issue to bring a conclusive solution towards however, the article makes a good point in sharing that there is a vital need to reexamine the present system.
Escalating prices for food are driving up the cost of groceries in the U.S., effecting consumers and companies. “Federal forecasters estimate retail food prices will rise as much as 3.5% this year, the biggest annual increase in three years, as drought in parts of the U.S. and other producing regions drives up prices for many agricultural goods” (Dreibus). For instance, “Drought in Brazil, the world's largest producer [in] coffee, sugar and oranges, has increased coffee prices, while dry weather in Southeast Asia has boosted prices for cooking oils such as palm oil” (Dreibus). Also, “In the U.S., much of the rise in the food cost comes from higher meat and dairy prices, due in part to tight cattle supplies after years of drought in states such as Texas and California and rising milk demand from fast-growing Asian countries” (Dreibus). Consumers and producers will take action to cope with these surging food prices under several economic principles.
To begin, the farm actualized the production efficiency by using the smaller trees, which require less care as they grew much faster thus elimination equipment and service cost. Also, it helps to collect more crops in little amount of time, so these increasing the gains from output. Additionally, the new technologies performed a better job than the workers could do, simultaneously, decreasing the damage to the environment. And the organization enforced the cuts in labor costs by paying them the minimum according to their skills. Notwithstanding, the product differentiation is supposed to be their next focus. Due to the increased supply from the foreigners, large variety and decreased price, people are more concerned about the quality nowadays. Some of them choose organic but more expensive or others choose cheap but with a lower quality. In case of a farm production, people go there for the quality of the offered products. Also, as it stated in the article, people would like to alter their nutrition plans by including various fruits and berries. According to all these information, not only cut in the costs will benefit company, but also the advantage in the products over the competitors’. Another good choice to raise the profits would be to pair up with another farm, which produce another product at the lower opportunity cost, so then the farms can exchange the products
"Marketing Reforms, Market Development and Agricultural Production in China." Agricultural Economics 17 (December 1997): 95-114.
Since its inception in 2001, Fonterra Co-Operative Group Limited (Fonterra), the largest company in New Zealand, has grown to be the world’s 4th largest dairy company in 2013 (Robobank, 2013). Fonterra is the largest dairy exporter of the world and it controls a third of global dairy exports. Fonterra has huge pool of talents of 16,000 staff locally and internationally to make dairy available every day to millions of consumers ...
Brands like Milk Pak (owned by Nestle) and Haleeb Milk (from Haleeb Foods) had led the dairy market in the world’s fourth largest milk producing country for nearly two decades—without any real sustained competition. Engro Foods, in contrast, had only recently been established by Engro—a traditional giant in Pakistan's chemical and fertilizer (yes, chemical and fertilizer) industry.
The growing world population is demanding more and different kinds of food. Rapid economic growth in many developing countries has pushed up consumers' purchasing power, generated rising demand for food, and shifted food demand away from traditional staples and toward higher-value foods like meat and milk.
from whole milk, cream or skim milk (Marwaha et al., 1988). For year, whey was thought to be insignificant and was either used as an animal feed or it was disposed of as waste (Tsakali, E. et al.2010). Depending upon the variety of the cheese produced (e.g. hard or semi-hard), the average yield is 1kg from 10L of milk, where the balance (9L) is whey. Hence, it is apparent that daily production of whey can amount up to several millions of litres in large cheese plants. The world whey production is over 160 million tons per year (estimated as 9-fold of the cheese production), showing a 1–2% annual growth rate (Guimaraes et al., 2010). Today, the annual global increase of whey production is equivalent to 2%, which
The growth of the world’s population has led to a growth in animal agriculture, because as population grows, the need for food does as well. Animal agriculture is the use of animal farms to produce animal products that are then consumed by the general public. As agribusiness expands, issues such as the need for farm insurance and animal rights have received more awareness. Modern day industrialism is being applied to animal agriculture in developed nations such as the United States and Canada. Farm Foundation, a nonprofit organization focused on research in agribusiness and improving the economy through agriculture, claims that “the North American livestock industry is expected to
Dutch Lady Malaysia offers wide range of products for both domestic and foreign markets. In the 1960s, Dutch Lady started by offering a single product, a sweetened condensed milk and continued to offer various product innovations to accommodate wider ranges of milk-related products. In year 1986, Dutch Lady produced and supplied sterilized milk in plastic bottles to public. In the same year, Dutch Lady offered 'chilled' milk. Two years later, Dutch Lady developed a market for growing-up milk and yoghurt products. Today, after much effort to offer wider range of products to customers, Dutch Lady’s product ranges from infant nutritional products to growing-up milk and from sweetened condensed milk to fruit and yoghurt beverages.