China's dairy industry is in a dilemma

Introduction: following Mengniu's announcement that the management and investors sold 316 million shares to cash in, Guangming milk back event, Shaanxi milk pouring event, and the current dairy price war, the competition made the operating cost of the whole dairy industry keep rising, and the dairy industry fell into an unprecedented dilemma Since the first half of last year, it has become an indisputable fact that the gross profit rate of dairy industry has declined In the semiannual report released by Yili last year, the gross profit margin of liquid milk was 3.34 percentage points lower than that in the previous report Since its official listing in September of the previous year, Sanyuan has been continuously issuing performance warning advisory announcements Song Kungang, President of China Dairy Industry Association, pointed out that the main reason for the difficulty of China's dairy industry is that blind development and repeated construction lead to unreasonable resource allocation and local excess of milk sources Song Kungang said: "the first problem to be solved in the current development of China's dairy industry is blind development and repeated construction Some places fail to take into account the characteristics and laws of dairy processing, resulting in repeated construction of dairy plants, insufficient utilization of processing capacity and no benefits, resulting in unnecessary competition and waste of resources " In recent years, due to the flourishing of "false fire" in the dairy industry, some enterprises have misjudged the market, resulting in the abnormal development of the production layout of dairy products For example, there are more than 20 dairy factories within 50 kilometers around Xi'an, with liquid milk processing capacity of 3000 tons per day and actual production of about 1500 tons At present, about 70% of the 70 dairy enterprises in Shaanxi Province are under construction, and the idle assets waste hundreds of millions of yuan A dairy factory in Xi'an invested more than 40 million yuan in six dairy production lines two years ago In addition, some experts believe that the distribution of milk sources in China is extremely unbalanced, and this distribution is becoming more and more serious As a result, there is a surplus of milk resources in some areas of China, which has become an urgent problem to be solved in the development of China's dairy industry Song Kungang also said that in addition to the unqualified quality of milk, the main cause of the "pouring milk" phenomenon that has been concerned recently is the partial excess of milk source caused by blind development Recently, there have been frequent incidents of "pouring milk and selling cattle" by dairy farmers in the surrounding areas of Shijiazhuang City, Hebei Province For several days, several tons of fresh milk are poured out every day in some milk purchasing sites because of "unqualified inspection" Some dairy farmers have poured more than 20 tons of fresh milk, each with a direct loss of more than 20000 yuan Coincidentally, four dairy factories in Yueqing, Zhejiang Province, have been shut down recently There is no place to sell fresh milk in more than 100 local dairy farms The daily average output of more than 20 tons of milk is facing the dilemma of being dumped because of no place to supply Similar incidents have occurred in Sichuan, Hubei and other places It is understood that the purchase price of raw milk in the mainland has also shown a straight-line downward trend in the near future The purchase price per ton of raw milk dropped from 1300 yuan to 1500 yuan at the end of last year to 1000 yuan to 1200 yuan In some areas, there was even an ultra-low price of 500 yuan to 800 yuan It is reported that these poured milk is indeed a quality problem However, an industry source also said: "from the previous enterprises asked milk farmers to sell milk, to now milk farmers pour milk, the key is more raw milk If the enterprise cannot use it up, the testing standard will be strict If the enterprise does not purchase, the raw milk will have to be dumped " Wang dingmian, vice president of Guangdong Dairy Association, also pointed out that many local dairy associations in many provinces and cities have received feedback from dairy farmers The raw milk that used to be rated as the first level of milk is now rated as the third level at most Dairy farmers and dairy producers cannot store a large amount of raw milk, so they can only pour milk frequently Is China's milk really too much to use? According to Wang dingmian, China's raw milk is only surplus in some regions, but the total amount still does not reach the world average level For example, Guangdong, a major province of fresh milk consumption, is still a major province of raw milk shortage Last year, there were only 45000 black and white dairy cows in Guangdong, and no more than 55000 of other breeds The self-sufficiency rate of raw milk in Guangdong was only 30% in the whole year Wang Hao, deputy general manager of Guangdong Yantang milk company, said in an interview that at present, the purchase price of raw milk of the highest quality level is as high as 3000-3500 yuan per ton, which is seven times higher than the ultra-low price of 500 yuan per ton in some inland milk source bases In fact, industry insiders estimate that the shortage of dairy cows in Guangdong Province is likely to intensify this year It is understood that Guangdong Yantang milk company is preparing to invest in a new factory in Zhanjiang, which needs thousands of cows Foshan AoChun, who has just found a new owner, is also eager to expand its scale, and Wenshi milk company is ready to expand a new cattle farm Although Fujian Changfu milk has started to export raw milk to Guangdong dairy enterprises before, it still cannot change the situation of lack of raw milk in Guangdong as a whole Some people in the industry have proposed that since the distribution of milk sources in China is so unbalanced, why don't industry associations play the role of North-South dispatching? It is reported that the American Dairy Association is a huge organization, which can fully grasp the industry resources at ordinary times Once there is a problem in any link of the industry chain, it can fully mobilize resources for adjustment To this end, Wang dingmian, vice president of Guangdong Dairy Association, said: at present, our industry association does not have complete market allocation capacity In case of such an emergency, it is impossible to dispatch or negotiate with enterprises on behalf of farmers.