Livestock sector

Livestock is a key sector in China's agriculture and a top priority target for rapid development and modernization in China's current 5-year plan.

China is the world’s largest livestock producer and consumer. China has more than 400 million cattle, sheep and goats, but pig and poultry meat and meat products are the most popular meat consumed in China. However, the consumption of beef and beef products, fresh milk and dairy products such as yogurt is increasing rapidly and is strongly encouraged by the Chinese government as a means of improving national health - especially for the elderly and the young through schemes such as the School Milk Program.

It is forecasted that China's consumption of meat and dairy products will continue to climb sharply due to a rising population, strong growth in per capita income, improvement in domestic meat and dairy production systems, greater access to meat and dairy products in the western and central parts of China due to better transportation and distribution systems, shifting consumption patterns and lower prices.

As for other food plants and animals, the Chinese value freshness and prefer meat, milk and processed products from exotic animals and animals caught or raised in the wild.

China is essentially self-sufficient in meat and meat products except high-end products, offal and specific meat for re-processing for export. However, it will be decades before China can sufficiently develop its dairy sector to satisfy the domestic demand for fresh milk and milk products such as yogurt, ice cream, butter and cheese etc. The United States is the primary supplier of milk and whey powders to China and the cheese and butter market is currently dominated by Australia and New Zealand.

Poor food product quality, safety and unreliability are major problems for the Chinese consumers and have been plaguing China’s market access efforts.

Top 10 China dairies: Shanghai Bright, Inner Mongolia Yili, Shijiazhuang Sanlu, Heilongjiang Wandashan, Beijing Sanyuan, Inner Mongolia Mengniu, Heilongjiang Dairy, Xian Yinquao, Zhejing Junyao, Heilongjiang Jinxin

Major foreign dairy companies in China: Nestle, International Nutrition Corporation, Parmalat, Danone and Craft

Key poultry production provinces: Shandong, Sichuan and Guangdong

Key pork production provinces: Sichuan, Hunan, Henan, Shandong, Hebei, Anhui and Yunnan

ã	Annual dairy sales in China are more than A$4 billion and are increasing by 30% per year
ã	Milk and dairy product consumption is increasing by 10% annually
ã	Raw milk production is expected to increase by about 25% annually

Major Business Opportunities

	New animal genetics introduction and improvement of indigenous draught animals for meat and milk
	Pasture production and processing
	Feed formulation and production
	Beef and dairy cattle husbandry
	Goat and sheep dairy
	Abattoir operations
	Meat processing
	Dairy products manufacture and equipment
	Egg by-products manufacture
	Organic dairy and organic meat production
	Skins, hides and fiber processing
	Technology development & transfer
	Quality control and assurance systems
	Intensive livestock production system
	Re-surfacing depleted grassland in the north and west of China for grazing
	Livestock waste treatment and management
	Training
	Import and export of livestock products
	Modernization of Chinese livestock operations through JC/JV or acquisition

Keys Needed to Develop and Capture Business Opportunities in China

How AgrifoodAsia Can Help You

In view of the vast business potential in China, businesses worldwide are actively searching for ways and means to access China’s vast market. However, while tremendous opportunities exist in the huge Chinese agrifood market, accessing and turning those opportunities into reality is not easy.

Unless you have a product or service that sells itself, having a quality product or service at a competitive price does not necessary translate into instant success in China. The average foreign organization or company would still be required to spend considerable financial and

human resources and years of time to build and acquire the China knowledge, business structures, networks and skills necessary for sustainable success in China.

AgrifoodAsia can minimize your chance of disappointment and lost opportunities, and save you time, money and effort by providing you with our extensive China business structures, mechanisms, networks, expertise and experience, and equip you with the skills necessary for you to DO and MAKE business HAPPEN in China by joining our partnership program or through our training program.

Please browse our Partner and Business Centres for more information on how we can work with you to make business happen for you.