Wine market in china

Cheese Market in China

General overview
Since 1980’s, Chinese dairy industry has witnessed remarkable development. Especially in the past decade, milk production, dairy processing and dairy products consumption has been grown rapidly. In 2004, the volume of dairy cattle farming recorded USD 6.024 billion, which made up 5% total output value of animal husbandry; and 1.5% of the output value ofagriculture. Meanwhile, the volume of dairy processing reached USD 7.991 billion, which accounted for some 10% of total output value of the food industry of the whole country
(China Dairy Yearbook 2005).
Even though the market of dairy is growing rapidly, the total market size still is small vis-à-vis the total population of the country. This is simply because dairy products are not very muchpart of traditional diet. According to the Chinese Dairy Council, Chinese consume only about 150 grams of cheese per capita a year compared with 14 kg in the U.S. and 24 kilograms in France. However, the market is developing, especially in big cities, such as Beijing, Shanghai, Guangzhou etc. Now it is very common that people can find cheese at hypermarkets (Carrefour, Metro, Lianhua,NongGongShang, Wal Mart etc), western fast-food chains (McDonald’s, KFC, Pizza hut, PaPa John’s etc.).

Cheese production, trade and consumption
Up to now, cheese still is not one of the favourite dairy products for most Chinese people; the consumption of cheese in P.R.China has been increasing. However, amongst the total
amount of the consumed cheese, the cheese imported from abroad took a bigproporation. In another words, the own cheese production of P.R.China still is very limited. Possible reasons could be a) limited market demands; b) lack of relevant technology and know-how; c) insufficient raw milk production; and d) undeveloped cold-chain distribution (especially in rural areas).

Year Output Growth
2000 0.80
2001 0.70 – 20%
2002 1.70 142%
2003 1.20-29%
2004 8.02 568%
Table 1 Cheese production in China, 2000-2004, (unit:1000 MT)
(source: China Dairy Yearbook)
Following table indicates the volume of imported cheese of P.R. China from the year of 1999 to 2005. It is clear that most of the cheese consumed in P.R. China is from abroad. New
Zealand, Australia are the most important cheese export countries for P.R. China.Germany and the United states stand on the 3rd and 4th position.

Year Volume Value
1999 1.18 3.08
2000 1.97 3.93
2001 2.03 3.97
2002 2.53 5.73
2003 4.61 9.75
2004 7.24 21.64
2005 7.18 26.42
Table 2 Cheese imports in China, 2000-2004, (unit: volume 1000 MT; value mln USD)
(source: China Dairy Yearbook)

In P.R. China,the top 10 dairy processors in 2004 are Yili (Hohot), Mengniu (Hohot), Bright (Shanghai), Sanlu (Shijiazhuang), Yinqiao (Xi’an), Jiabao (Jinan), Wondersun (or
Wandashan, Harbin), Sanyuan (Beijing), Heilongjiang Dairy Group (Harbin), and AVA (Changsha). Nevertheless, cheese hardly is one of the main products for most of them. Only 2 of them stand among the major cheese processors in the countryin 2004.

No. Company Headquarter
1 Bongrain (Tianjin) Foods Ltd Tianjin
2 Bright Dairy & Food Co Ltd Shanghai
3 Finland Valio Co Ltd Shanghai
4 Beijing Sanyuan Foods Co Ltd Beijing
5 Inner Mongolia Yili Industrial Co Ltd Hohhot
6 Dali Lesson Dairy Co Ltd Dali, Yunnan
7 Heilongjiang Redstar Group Co Ltd Anda, Heilongjiang
8Inner Mongolia Naizhongnai Co Ltd Baotou, Inner Mongolia
Table 3 Major cheese processors in China
(source: China Dairy Yearbook)

Currently, cheese still has a tiny market in China, with sales of just 49.7 mln USD in 2005. In fact, 2005 sales jumped 18% from 2004, marking a 123% increase since 2000. Volume of cheese sales for the year reached 4 160 MT. The main consumers of cheese are…