Warrior Cattle Stockman

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Research Report on China's Dairy Cattle Market-Aarkstore Enterprise

Table of Contents :

Research Report on China’s Dairy Cattle Farming Industry 1

Research Background 1

Summary 1

1. Overview of China’s Dairy Market 5

1.1 Growing Trend of Processing Industry of Milk and Dairy Products 5

1.1.1 Dairy Cattle Inventory 5

1.1.2 Milk Production 5

1.1.3 Cow Yield 5

1.1.4 Dairy Cattle Farming Scale 6

1.1.5 Liquid Milk Production 6

1.1.6 Production of Dry Dairy Products 7

1.1.7 Per Capita Milk Possession Volume 8

1.1.8 Trade of Dairy Products and Dairy Animals 9

1.2 Gradual Improvement of Dairy Farming Industry in National Economy 11

1.3 China Shifted from Milk-insufficiency to Big Producer of Milk in the World 12

1.4 Time Is Needed for China to Shift from A Big Milk Producer to A Competitive Milk

2. Analysis of Policies and Regulations on Dairy Farming Industry in China 14

2.1 Comments on Promotion of Constant and Healthy Development of Dairy Industry from the State Council (Guo Fa [2007] 31) 14

2.2 Administrative Rules on Dairy Quality and Safety Supervision 16

2.3 Plan on Dairy Industry Rectification and Vitalization 16

2.4 Industrial Policy on Dairy Processing (2009 amendment) 19

2.5 Regulating Raw Milk Market Order 21

2.6 Regulating Raw Milk Pricing Mechanism 22

2.7 Subsidy for Elite Breeds 23

2.8 Subsidy for Agro Machinery 24

2.9 Insurance for Dairy Cattle 25

2.10 Control over Import of Dairy Animal Products 26

2.11 Raw Milk Standard 27

3. Analysis of Major Technologies of Dairy Farming Industry 33

3.1 Embryo Bioengineering Technology 33

3.2 DHI Performance Test 37

4. Analysis of Supply of Dairy Cattle Farming Industry 39

4.1 Dairy Cattle Inventory 39

4.1.1 Dairy Cattle Breeds 39

4.1.2 Dairy Cattle Inventory 39

4.2 Milk Production 42

4.2.1 Gross Raw Milk Production 42

4.2.2 Raw Milk Production Layout of Various Places and Cow Yield 42

4.3 Dairy Cattle Introduction 45

4.3.1 Live Cattle 45

4.3.2 Frozen Semen 46

4.3.3 Embryos 47

5. Analysis of Demand of Dairy Cattle Farming Industry 49

5.1 Disparity in Dairy Consumption between Chinese Residents and Other Countries 49

5.2 Analysis of Demand for Food Nutrition of Chinese Residents 50

6. Analysis of Marketing Environment of Dairy Cattle Farming Industry 53

6.1 Trading Market of Dairy Cattle and Germ Plasm 53

6.1.1 Importation Procedure and Supervision over Import of Dairy Cattle and Germ Plasm 53

6.1.2 Major Suppliers of Dairy Cattle and Its Germ Plasm 54

6.1.3 Pricing Mechanism of Dairy Cattle and Germ Plasm in China 57

6.2 Raw Milk Trading Market in China 61

6.2.1 Raw Milk Pricing Mechanism 61

6.2.2 Composition of Raw Milk Price 61

6.2.3 Roles of Raw Milk Procurement Stations (milk stations) in Raw Milk Pricing 62

6.2.4 Impact from Government on Raw Milk Price 63

7. Analysis of Dairy Cattle Related Industries in China 65

7.1 Feed 65

7.2 Milking and Relevant Equipment 67

7.2.1 Milking Equipment 67

7.2.2 Cooling Tanks 68

7.3 Vaccines 69

8. Analysis of Cost-Benefit of Dairy Farms of Different Scales 70

8.1 Dairy Cattle Farming Scales 70

8.2 Smallholder Farming 72

8.3 Scaled Farms 76

8.4 Efficiency of Some Scaled Dairy Cattle Farms in Raw Milk Producing Regions after Melamine Incident 89

8.5. Analysis of Cost-Benefit of Different Farming Scales 94

9. SWOT Analysis of Different Farming Scales 97

9.1 Smallholder Farms 97

9.2 Farming Zones 98

9.3 Dairy Farmers’ Cooperatives 99

9.4 Milk Unions 99

9.5 Farms Owned by Dairy Processing Companies 101

9.6 Trend of Dairy Cattle Farming Modes 102

10. Analysis of Epidemic Environment of Dairy Cattle Farming Industry 103

10.1 Epidemic Categories 103

10.2 Regional Layout of Dairy Cattle Epidemics 103

10.3 Epidemic Control and Dairy Cattle Insurance Policy 105

10.3.1 Prevention of Dairy Cattle Disease 105

10..3.2 Policy Insurance 105

11. Analysis of Impacts from Melamine Incident and Financial Crisis to Dairy Cattle Farming Industry in China 124

11.1 Impact on Dairy Cattle Price and Raw Milk Price Trend 124

11.2 Short-term Decline of Dairy Cattle Inventory 125

11.3 Accelerated Elimination of Low-yield Dairy Cattle and Improvement of Yield 125

11.4 Heightening of Threshold to Dairy Cattle Farming Industry 126

11.4.1 Prerequisite for Establishment of Dairy Farms and Farming Zones 126

11.4.2 Prerequisite for Opening Raw Fresh Milk Procurement Stations (milk stations) 126

11.5 Pacing up Transition from Extensive to Scaled, Intensive and Quality Efficiency Farming 127

11.6 Slowing down of Development of Dairy Cattle Farming Industry to Become Normal 127

11.7 Standardization of Supervision over Raw Milk Market 128

11.8 Raw Milk Quality Standard Gradually Links up with International Norms with Accelerated Improvement 128

12. Analysis of Investment Opportunities of Dairy cattle farming industry 130

12.1 Market Demand 131

12.1.1 Feed 131

12.1.2 Live Animals 131

12.1.3 Frozen Semen and Embryos 131

12.1.4 Vaccines 132

12.2 Milking Equipment 132

12.3 Farm Management Software System 132

12.4 Testing Facilities of Raw Milk 132

12.5 Training of Human Resources 133

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