Big changes ahead in Chinas dairy industry China has released a plan for large-scale consolidation of the infant formula industry. The industry has been struggling to win consumer confidence ever since the tainted milk scandal in 2008. As of the end of August 2013, the market share of domestic milk brands had dropped from 80% in 2008 to 60%. Meanwhile, imports of infant formula have increased from 140,000 tons in 2008 to 854,000 tons in 2013. Taking into account this trend, the authorities have put together a comprehensive restructuring plan. The plan: The new plan aims to consolidate the large number of suppliers that are currently operating in the market to set up 10 mega-producers of milk powder. All of them combined are then expected to account for 40% of the total sales, which are estimated at 35 billion yuan ($5.64 billion). By 2018, the plan foresees a further consolidation with 3 to 5 giant milk powder producers emerging. There will be massive organizations, producing milk in advanced production facilities with strict quality controls. https://youtube/watch?v=yi7mLCJ1Tsc
Posted on: Sun, 15 Jun 2014 12:37:19 +0000
Trending Topics
Recently Viewed Topics
© 2015