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How China's Dairy Measures Affect Foreign Dairy Companies?

放大字体  缩小字体 Date:25 May 2018  Source:Foodmate  Writer:Foodmate  Views:116
 On May 23, 2018, the State Council executive meeting put forward a number of measures to accelerate the revitalization of the dairy industry and guarantee the quality and safety of dairy products. What are the important measures? How will it affect foreign dairy companies?


The important measures and interpretation:

1. Pursuit of high-quality milk sources: Vigorously introduce and breed good-quality cows and build national core breeding farms. Strengthen the production of high-quality forage materials. Develop standardized scale farming and build a high-quality milk source base.

2. Strengthen quality and safety supervision: Focus on strengthening the supervision of the three key links of milk farms, raw milk acquisition stations, and transportation trucks. Revise and improve national food safety standards of raw milk and sterilized milk,etc. Establish a quality tracing system throughout the whole process. Strive to significantly improve the quality, competitiveness and reputation of domestic infant formula milk powder within 3 years.

3. Financial and technological support: Strengthen the support on the financial insurance and breeding land for milk, etc. Also promotion and application of dairy-related Internet of things technology and intelligent technology equipment to create more beneficial conditions for the revitalization of the dairy industry.

How will it affect foreign dairy companies?

For foreign dairy companies, the above measures are dedicated to the health, standardization, and internationalization of China's dairy industry development. The revised draft of the previous dairy standard also shows that China is continuously raising national food safety standards to meet the needs of the globalization of the domestic market.

In line with the international advanced level, domestic milk and imported milk are developed under the same standards to improve the quality of domestic milk. The competitiveness of foreign dairy companies in terms of quality is no longer evident, nor in price

For Chinese consumers, there is a certain national sentiment. In the case of the same quality, Chinese domestic products are more preferred. China also develops the national dairy brand and will hold a series of international dairy brand promotion activities to promote the dairy companies big joint, collaboration and enhance Chinese dairy brand influence.

Therefore, Foodmate predicts that the market share of foreign dairy companies is more likely to be further occupied by domestic companies.

Some advice for foreign dairy companies from Foodmate:

1)       Quality Product is the KING.

a)        Chinese consumers were hurt by melamine scandal. So they value quality product.

b)        Time also told the Chinese consumer that not all foreign products are premium and high quality. So if you want to enter China market without “Quality first”, you will lose.

2)      Update to date Chinese regulation & consumer trend

Economically Chinese is developing very fast. Its food regulation, as well as consumer trend, is also changing very fast. Master the regulation context is prerequisite for foreign companies to enter and survive in China. Today’s Chinese consumers are not still living in the year of 2008, now they need more than quality …

3)      Control your supply chain distribution

If as the brand owner, you even do not know where your product is flowing to, then there is no surprise that consumers will also lose their confidence in you.


 

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