China's Dairy Manufacturers Collectively Appear on CCTV Bidding

More than ten dairy manufacturers including Mengniu, Yili, Sanyuan, Feihe, VV, Beingmate, Dumex, Bright, Ausnutria, Wondersun, Murray Goulburn, Yinqiao and Xiaoyangren collectively appeared on CCTV Bidding for 2010, which not only became a highlight at the conference, but also sent a strong signal of the overall rejuvenation of China’s dairy industry.

Mengniu Group won several golden advertising resources including the commercial time of Sponsor of TV Series in the first half of 2010, commercial time of CCTV-1 Golden Theater and special A section. In July 2009, COFCO, a central state-owned enterprise giant became one of the shareholders of Mengniu. This initiative not only optimized Mengniu’s industrial chain but also provided a sound financial guarantee to Mengniu. It is expected that Mengniu will continue to be a leading manufacturer in China’s diary industry in 2010 due to its multiple advantages including raw milk resource, process, technology, financing, branding and marketing.

Actually, there has been an increasingly obvious sign of rejuvenation of China’s diary industry since the third quarter of this year. The proofs are the sound growth of production and sales and the increase of profit rate. In the last quarter, the rejuvenating momentum of China’s diary industry has shown better performance than expected. The industrial index went up and the breeding quantity of milk cow, the milk yield and the sales volume all turned good.

According to statistics, the revenue of China’s dairy industry amounted to RMB 101.9 billion in the first eight months of this year, up by 5.44% compared to the same period of last year. The total amount of profit reached RMB 6 billion, up by 14.36% compared to the same period of last year, with a sales rate of 5.95%. Mengniu’s revenue in the first half of this year amounted to RMB 12.0976 billion, up by 19% than that of the latter half of 2008, with a net profit increasing to RMB 661.9 million. Yili Group’s sales value in the first three quarters of 2009 exceeded RMB 19 billion. The statistics indicate that the sales of dairy products and purchase of raw milk have been generally recovered.

With an increasingly higher standard of living, more and more Chinese consumers get into the habit of drinking milk every day because they have realized that “milk is a kind of almost-perfect food”. Despite the great impact on the diary industry, the nutritive value is still essential for the improvement of people’s health and physique. As a token of the nutrition necessities and an upgraded consumption structure, diary products are definitely indispensable for the solid market demand.

According to surveys, people aged from 26 to 35 constitute the main consumer group in the diary market. A majority of consumers take an optimistic attitude toward the prospect of China’s diary industry. The number of dairy product consumers is going up year by year due to the transition of consumption concept and the increase of residents’ income. As a result, the consumption of diary products enjoys a sharp rise year by year.

An insider states that efforts should be made in a wide range of elements including raw milk resource, process, technology, financing, branding and marketing to gain the comprehensive competitive advantage. CCTV has always been an indispensable platform to help dairy manufacturers achieve rapid growth and nationwide expansion.

With the recovery of the Chinese economy, the confidence of consumers is increasingly strong, which will definitely promote the further development of China’s diary market.