Dairy industry needs protection or competition
-
Last Update: 2002-06-27
-
Source: Internet
-
Author: User
Search more information of high quality chemicals, good prices and reliable suppliers, visit
www.echemi.com
Introduction: a few days ago, Oriental egger Agricultural Consulting Co., Ltd organized the "seminar on the integration strategy of multinational companies and leading enterprises of China's agricultural industrialization after WTO" It was revealed at the conference that Nestle is preparing to integrate with Yunnan Dengchuan diequan dairy industry recently, and has signed cooperation intention with Eryuan County Government and Dengchuan diequan company This was good news I didn't want to talk about "China's dairy industry needs to be protected" and even criticize Nestle The criticism of Nestle focuses on one point: Nestle wants to occupy the Chinese market at a loss It's really not appropriate to run at a loss in order to enter the market -- at least, what kind of factory hasn't been built for the profit? But 95% of Nestle's business is outside Switzerland, and its market is already global, so there is no reason to blame Nestle for occupying the Chinese market In addition, how can nestle, the world's food industry leader, not make money? However, Nestle's success depends not on plundering the market but on cultivating and developing the market In the early stage, not pursuing profit is the investment for long-term profit This kind of long-term management strategy should not be criticized, but should be used for reference Not only Nestle, when entering the dairy market in Beijing, the domestic dairy princes have already adopted this strategy It's understandable that the above accusations happened in the planned economy period It's no longer appropriate to mention them now 7u6 at the "seminar on the integration strategy of multinational companies and leading enterprises of China's agricultural industrialization after WTO", the integration of Nestle and diequan dairy industry in Dengchuan, Yunnan Province is just a piece of brick thrown out, the key is the jade that is brought out later - China dairy industry needs to be protected It is precisely out of this idea that some representatives of domestic dairy enterprises made a low-key accusation and "joint venture of dairy industry should be careful" Ding Li, deputy director of the industrialization leading group of the Ministry of agriculture, also made an example: Why did the last champion France lose so badly in the world cup? It's because there's less competition It's too friendly The first competition is second On the other hand, Ding Li also said: "in the early stage of Nestle's entry, China traded market for technology, so at that time, it was very welcome to include European dairy aid and the entry of some companies However, multinational companies have entered the world for many years, and their industries, knowledge, management and technology have been mastered by domestic enterprises, and some of them are better than them In this case, is the entry of foreign enterprises mainly to compete for market share? And this market share is related to the income increase of local farmers "- although domestic enterprises have not avoided learning" industry, knowledge, management and technology "from foreign enterprises, the negative implication is obvious 7u6 refers to the impolite "protection", which means to protect the market share of domestic enterprises But how big is the market of agricultural products and dairy products in China? Without the participation of foreign enterprises, the market will not have the content and capacity today A market with a population of 1.2 billion is not equal to a market with a population of 1.2 billion, let alone a market for domestic agricultural products and dairy products It's easy to say "no" with a straight face, but what are you going to protect and what are you going to protect? Does China's dairy industry no longer need to be introduced and studied? What else do we need to protect if we reach this level? The backwardness of China's agriculture, including the dairy industry, is precisely the lack of competitiveness, not only because of inadequate protection, but also because the potential market is not large enough Take the world cup as an analogy The reason why the international football market is so fierce is that everyone appreciates the world cup in which the strong compete for the top If the referees blow away the strong teams, the world cup will suffer humiliation and loss The best way to protect China's agricultural products and dairy market is to respect the strong and let the most competitive athletes stay in the exciting competition 7u6 (author:) to feed Weibo to:
This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only.
This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of
the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed
description of the concern or complaint, to
service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content
will be removed immediately.