Shanghai Daily
May 31,2008
Dairy products are stocked on the shelves of a supermarket in Beijing in this file photo. China' s milk product output reached 36.5 million tons last year, ranking the nation third in the world.
China has experienced fast growth in its dairy industry during the past 10 years even though dairy consumption per capita is far lower than international levels, experts told an industry forum on Friday.
Analysts said that the increase in dairy consumption in rural areas had paved the way for the whole industry's fast and sustainable development.
Dairy product output increased 21.79 percent to 17.87 million tons, in addition to an expanded import of 298,600 tons, according to the China Dairy Industry Association.
"Given the huge output, China is still a dairy product importer," said Song Kungang, chairman of CDIA at the Professional Symposium on Dairy Strategies in the New Era, organized by the Chinese Nutrition Society and United States Dairy Export Council.
In 2007, most of China's dairy consumption occurred in cities.
A report from the Ministry of Agriculture showed that per capita dairy consumption in urban areas was 24.8 kilograms in 2005, a far cry from the 268 kilograms per capita in the United States in 2006.
"According to an industrial guideline, we are working toward reaching the goal of 300 grams of dairy consumption per day per person," pointed out by Zhao Faji, honorary director of the Chinese Nutrition Society, "There will be a long way to go."
But an increase in dairy consumption in Chinese suburban and rural areas is expected to quicken up the pace.
Consumption of dairy products in rural areas jumped 170 percent to 2.86 kilograms per capita in 2006 from 2000. The growth outpaced a 1.19-percent increase in expenditure on dairy products in urban areas during the same period.
The market demand from smaller towns comes against a backdrop of stronger purchasing power brought on by the nation's expanding economy.
It is also powered by efforts from dairy makers, including Inner Mongolia Mengniu Dairy Group Co and Yili Industrial Group, to tap the huge potential of maturing cosmopolitan markets.
Currently, milk contributes to most of the dairy consumption in China.
Zhao said diversified dairy products such as yogurt and cheese would be promoted to consumers in the future.