According to CCM, both regions are displaying a determination to raise their local milk production capabilities, with Tianjin Jialihe startingup the 1st phase of its Shandong project and Guangzhou’s Fengxing Milk importing 700 cows to its Huamei Farm.
Tianjin
On 2 November, the 1st phase of the Jialihe (Shandong) Animal Husbandry Co., Ltd. (Shandong Jialihe, in Laoling City, Shandong Province) project was put into operation officially. Its construction is part of Tianjin’s “Shopping Basket” programme (a state-level programme aimed at increasing local food self-sufficiency) and is a key project for Laoling City to develop links across the Beijing-Tianjin region. The project overall comprises 2 phases:
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1st phase: launched in April 2014 with an investment of USD57.0 million (RMB360 million), including 5 functional zones (feed storage and processing, cow feeding and milk production, etc.) with the potential to accommodate 15,000 cows. Its whole milking process is automated, sterilised and “intelligent”
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2nd phase: to be finished at the end of 2016, with an investment of USD228 million (RMB1.4 billion). It is expected that the company will be able to supply 220 tonnes of milk daily/76,000 tonnes annually to the region
Shandong Jialihe was set up by Tianjin Jialihe Livestock Co., Ltd. (Tianjin Jialihe), which to date has total assets of USD162.9 million (RMB1.0 billion) and net assets of USD66.8 million (RMB422 million). “Since July, we have been running 14 farms (with 24,000 cows) and 1 feed plant”, said Liu Lianchao, President of Tianjin Jialihe: “In 2015, the average milk yield per cow has exceeded 10.7 tonnes, and we expect to produce a total of 135,000 tonnes”.
In 2012, Tianjin Jialihe recorded the highest milk yield per cow in the country, at 12.3 tonnes. It has focused on increasing supply to satisfy the demand in the highly populated area through a strong emphasis on farming methods. According to Zhou Juan, Director of the company’s Production Technology Department:
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Feed: a total of 10 different feed formulations are being used to optimise output across different cows
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Management: careful management in areas such as feeding, prevention and control of diseases, breeding technology, etc. is helping us to increase milk output and reduce disease incidence
Guangzhou
In early November, Guangzhou Fengxing Milk Co., Ltd. (Fengxing Milk) successfully imported 700 Holstein cows (aged 11-13 months) from Australia to its Huamei Farm. It is expected that these cows can be mated in January 2016, to further calve and milk in October 2016.
In 2011, Fengxing Milk commenced the Qinglong Base project in Conghua Dist., Guangzhou City, which consists of 2 phases:
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1st phase: to accommodate 3,600 cows. This goal is achieved, and the farm is predicted to produce 16,000 tonnes of fresh milk in 2016
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2nd phase: to take the total herd to 7,200 (in combination with the 1st phase) and to produce 32,000 tonnes annually
Qinglong Base is set to become the largest modern dairy farm in South China - the country’s poorest milk supply region. In recent years, as living standards have improved, the consumption of fresh (pasteurised, short-life) milk is increasing year by year at 10% rate. However, the self-sufficiency level in Guangdong Province is less than 40%. Now Guangzhou’s municipal government is targeting 70% as part of its “Shopping Basket” programme. (This is similar to the national five year plan, and works on the same five year basis. In Guangdong, it covers the production levels in six agricultural and related products - vegetables, pigs, chickens, eggs, fish and milk).
Beijing-Tianjin region and Guangzhou are both fairly economically developed and highly populated areas, with strong demand for dairy products. Moreover, in the development of dairy farming, they have similarities:
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Shifting production from central to outer areas: Tianjin Jialihe has its farms in Tianjin itself (a 1st-tier city), but is now building its farms in the nearby Shandong Province; Fengxing Milk has relocated its Huamei Farm to the less densely populated suburban areas
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Clear focus on farming technology: Tianjin Jialihe has been a good performer in terms of the milk yields achieved; Fengxing Milk is particularly experienced in countering the effect of heat stress on its cows
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Milk sourced from nearby provinces: Tianjin’s raw milk is partly sourced from Hebei Province; Guangzhou purchases raw milk from nearby provinces such as Fujian
If you are looking for more information of the dairy industry, you could have a look at one of our product: Dairy Products China News.
About CCM:
CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.
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