Foreign brands will occupy half of China's infant milk powder market in 2011

At the end of the 10th China Infants and Children's Milk Powder Quality Safety and Whole Industry Chain Model Seminar, Ma Ying, deputy director of the Dairy Industry Management Office of the Ministry of Agriculture disclosed that in the first 11 months of 2010, the total amount of imported milk powder reached a record high, reaching 370,600 tons. Before the melamine incident in 2008, the market share of state-owned branded powdered milk was 60%. In 2010, imported milk powder was evenly divided with domestically produced milk powder. Looking ahead to 2011, we believe that the market share of foreign brands may exceed 50%. The market share of domestic milk powder was further eroded.

The influx of foreign brands led to an extremely fragile domestic milk powder industry chain. Ma Ying reminded that once the industry chain has been completely destroyed, the price of infant milk powder in China will be completely controlled by the international market. At present, Chinese consumers have begun to pay unreasonably high prices for this purpose: According to our survey, the lowest profit rate of imported milk powder sold in the domestic market is 40%. In the domestic production of the same quality of milk powder, the cost of a barrel of milk powder is only 40 yuan. Visible profits of imported milk powder in the Chinese market.

What is even more worrying is that China's dairy cattle breeding industry will also be subject to long-term squeeze: the increase of 100,000 tons of imported milk powder will directly lead to the reduction of demand for 850,000 tons of raw milk. This is equivalent to a reduction of 340,000 cows. It directly affects 340,000 people. At the same time, imported milk powder suppressed the purchase price of raw milk, which reduced the effectiveness of the farming process.