New opportunities bring life to the dairy ecosystem

Zhang Yu, reporter of this newspaper

"NetEase New Energy Dairy Industry Summit" was recently held
in Beijing.
The dairy industry is an important basic industry related to the national economy and people's livelihood, and is an urgent need to promote the "Healthy China" strategy, and scientific and technological innovation is the primary condition and core driving force
for healthy and stable development.
This summit, which brings together industry leaders, dairy experts and executives of the top 20 dairy companies, brings a feast
of ideas to the development of China's dairy industry.

The dairy industry forms a vibrant ecosystem

Tian Hua, vice president of NetEase Media, said in his speech that China's dairy industry not only benefits from long-term consumption trends, but also receives strong support from national policies, not only cultivating many international leading brands, but also subdividing many categories through industrial chain and product innovation, forming a vibrant industry ecosystem
.
It is expected that through the NetEase platform, the new energy, new products and influence of the dairy industry will continue to be transmitted to the public
.

Liu Yaqing, vice president and secretary general of the China Dairy Association, said at the meeting that in 2021, China's milk output reached 37.
78 million tons, and dairy product output reached 30.
32 million tons, an increase of 14.
3% and 19.
1% respectively over 2021, and the national dairy product output jumped to 30 million tons, and the total national milk consumption exceeded the 60 million ton mark
.
The development of the dairy industry is stable and improving, and the future dairy industry is expected to have broad prospects, but it is not optimistic, and the development of the dairy industry is still facing problems such as
imbalance between supply and demand and insufficient industrial competitive advantages.

Relevant institutions predict that the dairy industry will maintain an average annual compound growth rate of 4.
8% in the next five years, and the industry's revenue will reach more than 590 billion yuan
by 2026.
Liu Chao, vice chairman and executive deputy secretary-general of China Dairy Industry Association, said that China's dairy industry has entered a stage of high-quality and steady development, which is mainly reflected in the following aspects: First, the pasture construction has achieved remarkable results
.
In 2021, the proportion of large-scale breeding in China's dairy industry will increase to 70%, the mechanization level will reach 100%, the proportion of enterprises' own milk sources will exceed 40%, the pass rate of fresh milk sampling inspection will reach 99.
9%, and the quality of raw milk will reach the international level
.
Second, the quality is excellent and the position is leading
.
From 2017 to 2021, China has successively promulgated more than 80 national standards for dairy products, covering dairy farming, raw milk purchase, dairy processing, quality control, market monitoring and other aspects
.
The third is the green development of
ecological civilization.
China's dairy industry has a high brand concentration, the concept of green development is deeply rooted in the hearts of the people, and it has a very good foundation and advantages
in achieving green, low-carbon and sustainable development.
The fourth is to lead industrial upgrading
with science and technology.
In the era of great health, it has become a trend
to develop diversified and functional dairy products through scientific and technological innovation.

The trend of diversified channels and healthy consumption is more obvious

Liu Chunxi, CEO of Yili Group, said that since the beginning of this year, despite the impact of uncertainties such as the multi-point epidemic, dairy products, as a nutritious and healthy food, have increasingly become the rigid needs of consumers, and the development of the industry has steadily improved
.
In the face of the increasingly diversified and personalized new consumption trend of the consumer market, Liu Chunxi said that it is necessary to seize the market opportunities brought by new consumption, enhance insight, grasp new trends, and continue to meet the diversified needs
of consumers by strengthening innovation drive.

The development of China's dairy industry is also facing many challenges, and new changes in the diversification of channel categories and the health of consumption choices are becoming more and more apparent
.
Li Pengcheng, CEO of Mengniu Group, stressed that it is necessary to seize development opportunities and actively promote the transformation and upgrading
of the industry.

Deloitte China Vice Chairman Nengzi Shi said that under the background of upgrading consumer demand, constantly emerging brand-oriented communication strategies, and cold chain empowering dairy products, a number of new brands will break through from the red sea of market competition and drive the overall market to continue to rise
.

Hui Zhao, General Manager of Kantar Worldpanel North, explained the changes and trends in the FMCG industry with four keywords: steady recovery, price, new convenience, and emerging humans
.
Zhao Hui pointed out that the new convenience mainly depends on the changes in channels after the development of the epidemic in the past two years
.
Now O2O is growing very fast, including solving one-stop services, improvisation services, warehousing services, etc
.
Emerging humans have also brought new consumption trends, and there are more small households in first-tier cities, with one person as a family, such people account for more than 15% in China, and they are paying more and more attention to the quality of
products.

Product innovation has become a promoter to seize new opportunities in the market

How to seize new opportunities in the dairy market with product innovation? Tang Hong, General Manager of Beijing Sanyuan Food Co.
, Ltd.
, Zhu Chuan, President of New Hope Dairy, Ren Song, Co-CEO of Miaokolanduo, Sun Yugang, President of Modern Dairy (Group) Co.
, Ltd.
, and Dai Junqi, Vice President of Fonterra Greater China, started a heated discussion
.

Tang Hong said that as the first enterprise producing cheese in China, Sanyuan has a deep accumulation in technical reserves and capacity reserves, and has been deeply cultivating the catering market and serving Western food giants, accumulating rich experience
.
In the future, with the continuous improvement of quality and technology, more market needs will be segmented, and more new products
will be developed in a targeted manner.

Zhu Chuan put forward the "four forces" for product innovation, namely product power, channel power, marketing power and organizational power
.

Ren Song said that during the epidemic, on the one hand, the flow of customers in offline and online channels is decreasing, and on the other hand, people pay more attention to health
.
Miokolan, many targeted new products to meet consumer needs, at the same time, it also strengthens O2O, community group buying and other channels
that can greatly facilitate consumer purchases.

Carbon neutrality is a hot spot at present, and Sun Yugang introduced how modern animal husbandry can achieve green development
through technological innovation.
Under the existing model, modern animal husbandry has carried out some breeding optimizations to reduce
carbon emissions through high yields.
At present, the carbon emissions per kilogram of milk of modern dairy farming are less than 40% of the industry, but this is not the goal, and through the application of new technologies, it will be reduced by another 30%
on this year's basis.

Dai Junqi introduced the experience and experience of enterprise development from the perspective of digitalization, on the one hand, the use of automation, visualization and digitalization to improve operational efficiency, reduce internal operating costs, make enterprise operations traceable and traceable, and use digital means to achieve quality management improvement
.
On the other hand, digitalization has given us a great platform to study consumer preferences and achieve better communication
with consumers.

The implementation of the new national standard points out the direction for enterprises to enhance their competitiveness

The three new national standards for infant formula food announced in March 2021 will be officially implemented
on February 22, 2023.
According to the policy, on the day of the implementation of the new national standard, the manufacturer must organize production
according to the product formula registered by the new national standard.

What kind of opportunities will the new national standard bring to enterprises? Mou Shanbo, Chairman and President of Yipin Dairy Group, Yang Guochao, Senior Vice President of Corporate Affairs FrieslandCampina China, Wu Wenwen, General Manager of Brand Marketing Center of Blue River Dairy Group, Chen Xiaodong, Vice President of China Feihe, Xu Sa, Chief Scientist and Innovation Officer of Mead Johnson China, and Zhu Hui, Director of Public Affairs of H&H Group China, discussed and shared
.

Mou Shanbo said that it is necessary to think from the following two aspects, one is from the perspective of formula registration market supervision, enterprises to successfully pass the registration, it is necessary to carefully study the new version of infant milk powder production management rules and infant formula registration regulations, which put forward higher requirements
for enterprise research and development, industrial chain construction.
Second, from the perspective of market demand, enterprises should study the market demand they are facing now, whether consumer demand is upgraded or downgraded, and whether the market chooses to be a brand or a category
.

Wu Wenwen said that the implementation of the new national standard will prompt some brands to withdraw from the market, the number of players in the entire market will decrease, and the market will be further standardized
.
As formula registration converges between brands, head brands and category companies will have better opportunities
.

Chen Xiaodong believes that the new national standard is more stringent in the nutrition and safety indicators of the formula, which also encourages enterprises to continue to innovate and develop
to higher quality.
At the same time, the new national standard also points out the direction
for enterprises to further enhance their competitiveness.

Zhu Hui said that the new national standard has put forward new requirements and challenges
for enterprises from the perspective of raw materials, production and R&D quality of enterprises.
Enterprises should continue to contribute
to China's infant formula through strict quality requirements and continuous investment in research and development.

China Food News(Version 04, December 30, 2022)

(Responsible editor: Zhu Meiqiao)