Coronavirus outbreak in worldwide, many stories, supermarkets, factories, restaurants, offices etc., are closed. The food supply chain had stop, lots of food can not sell at this period. The dairy farm force to dump milk every day up to 20,000 gallons. It’s bad news.
Milk farm are dumping milk as the coronavirus disrupts the supply chain.
How to get more business after coronavirus period? This article tell you how to increase your milk farm sale volume & annual turnover.
In Asian market, there is a big opportunity in the world's second-largest economy country, China!
Why should entering China market?
Ideal Economic Growth Rate (GDP)
Milk Products Increasing Demand, Growth Rate 5%-10% Year By Year
China 1.4 billion people consumption, the NO.2 economy in the world. In 2018, imported 2,635,113 tons liquid milk, dry milk up to 1,930,960 tons. Dairy products demand increasing year by year, at least 6% rise per year!
The income and consumption rise year by year
Low Milk Consumption VS Great Potential Consumption With 1.4 Billion People
Dairy Products Import Data Of China 2012-2018
From 2011 to 2018, dairy products import volume increase 53%; import value from 4.3 billion raise up to 10 billion. Lets see details of each item and from origin countries:
Liquid milk import Data 2018
Top 5 liquid milk export countries:
Which province import high volume liquid milk?
No.1, Shianghai city, 50%
No.2, Guangdong province, 23%
No.3, Beijing City, 11%
No.4, Tianjin, 5%
No.5, Zhejiang, 3%
Milk powder import data 2018
It’s crazy data, but it’s true. New Zeland took 73%, plus Australia, up to 80%!
Which province or city import high volume powdered milk?
No.1, Tianjin, 23%
No.2, Shanghai, 23%
No.3, Guangdong, 16%
No.4, Zhejiang, 8%
No.5, Beijing, 6%
Condensed milk Import Data 2018
Which province or city import high volume condensed milk?
Cheese Import Data 2018
Which province or city import high volume cheese?
Yogurt Import Data 2018
Which province or city import high volume yogurt?
How to export milk products to China market? Follow steps:
1.Submit and register Manufacturer’s documentation to ‘General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China’ and 'GENERAL ADMINISTRATION OF CUSTOM, P.R. CHINA'. If not finish registration, do not allow sell to China.
1.1 Quarantine Access Procedures for Agricultural Productsto be imported to China for the first time
1.1.1The competent quarantine authority of the exporting country shall, according to the trade interest, submit an official application in written form to General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China（AQSIQ）for exporting agricultural products to China with the its name, variety , use and information of importers and exporters.
1.1.2AQSIQ will, according to the application, deliver a questionnaire concerning the Import Risk Analysis (IRA) to the exporting country for reply.
1.1.3After receiving the reply to the questionnaire, AQSIQ will organize the relevant specialist to initiate IRA process.
1.1.4If necessary, AQSIQ will ask the exporting country for more information during the evaluation period;
1.1.5Based on the assessment of the above information, AQSIQ will decide whether it is necessary to send a specialist group to the exporting country to have on-the-spot inspection.
1.1.6After finishing the IRA, AQSIQ will take account of whether or not to submit a draft of quarantine protocol or sanitary requirements for the product to be imported from the country to China, which will be discussed by both sides.
1.1.7After having reached agreement on the protocol or sanitary requirement, the trade of this product will be commenced according to the requirements specified in the protocol.
2.Prepare the label of product with chinese language.
3.Prepare documents: Sales Contract, Origin of Certificate, The report of quarantine authority, Sanitation certificate, Commercial Invoice, Packing List, Ingredient Analysis Report, Product Manual, etc. The requirement are different based on different origin country.
4.Find A Logistics Company which has rich experience in dairy products import, it’s very important. Milk products are high risk products, there is very strict rule for import in China.
Before sell to China, make sure the quality of dairy products must comply with China regulation. There five major factors:
1. Antibiotics Residues in milk products according to China regulation.
2. Pesticide Residues
Recently, various countries have paid great attention of pesticide residues in milk. According to the study, toxicology experts says that the pesticide residues in milk are micro-dose but will slowly poison human body. Strictly controlling of pesticide residues in dairy has attracted increasing attention.
Pesticides can be used to kill insects, fungi and other organisms that imperil the growth of crops. Some high stability pesticides can exist for long time in the nature, accumulating in animals, plants and humans to cause damage. Because there are many types of feed, such as corn, wheat, rice, sorghum, beans, etc., so there are also various kinds of pesticide. Besides, because of the long industrial chain of cow milk, the milk is easy polluted in the process chain, and threaten the dairy safety.
Many countries have revised the maximum residue limits (MRL) of pesticides in milk and dairy products and the standards are more strictly. While most of countries have ruled a lot of limit to pesticides, herbicides and fungicides usage. Japan has formulated more than 300 kinds of pesticide MRL in milk and a large kinds of the pesticides are “Not Allow”.
The Regulations of Pesticide Residues in Food, implemented on August 1, 2014 in Hong Kong, China, have made about 142 kinds MRL of pesticides residues. In addition, EU has ruled more than 460 kinds of MRL, the number is 190 in America, also 227 in Australia. Furthermore, Japan and Australia are the most strictly.
Where are the pesticide residues come from?
①Feeding the cows or animals with polluted water and feeds which contain pesticides, and some pesticides accumulated in the animals through the food chain.
②The herbicides usage to clean the fungi, bacteria, nematodes and flies, mosquitoes or other insects on the cows. The pesticides will mix into the milk or milking container.
③During the production of dairy products, the pesticides used in feed cultivation will flowed into raw milk, and then flowed into milk and dairy products through the process chain.
Pesticide Test
Methyl Parathion Rapid test
Carbaryl Rapid Test For Agricultural Products
Fenpropathrin Rapid Test For Agricultural Products
Carbofuran Rapid Test For Agricultural Products
Quinolones Rapid Test For Agricultural Products
Quinolones Rapid Test (0.5PPB)
Rhodamine B Rapid Test For Agricultural Products
Cypermethrin Rapid Test For Agricultural Products
Acetochlor Rapid Test For Agricultural Products
Isoprocarb Rapid Test For Agricultural Products
Amantadine Rapid Test For Agricultural Products
Chlorothalonil Test For Agricultural Products
Profenofos Rapid Test
Acetamiprid Rapid Test
Carbendazim Test For Agricultural Products
Methyl Parathion Test For Agricultural Products
Carbofuran Rapid Test
Fenitrothion Rapid Test For Agricultural Products
Chlorothalonil Rapid Test For Agricultural Products
Chlorpyrifos Test For Agricultural Products
Carbendazim Rapid Test
3. Heavy Metal Residues
Heavy metal toxicity: Typical symptoms of heavy metal poisoning Acute poisoning includes nausea, vomiting, headache, etc .; chronic poisoning causes anemia, neuropathy, cancer, etc. Lead in milk, nickel in milk, mercury in milk, arsenic in milk, nitrite in milk. It’s the partial listed of heavy metal.
4. Pathogenic Bacteria
It is not uncommon for organisms to invade milk. Microbes can invade milk sources through a variety of ways and methods. When the milk is contaminated with microorganisms, the microorganisms will rapidly multiply at the appropriate temperature, which will make the milk rancid and spoiled and lose its edible value. Phages of most bacteria such as Escherichia coli, lactic acid bacteria, dysentery bacteria, salmonella, cholera, staphylococcus, tuberculosis, actinomycetes, etc.
5. Milk Adulteration
Milk adulteration is mainly done by mixing water, rice soup, starch, sodium carbonate and other methods. The most commonly used is water blending. Mixing rice soup or mixing starch is a transforming method of mixing with water, which can cover the thin feeling when mixing with water, and mixing with starch can make the color of milk whiter. The purpose of blending sodium carbonate is to reduce the acidity of milk with mild spoilage and sourness, which should not be detected during testing.
6. Ingredient
Fresh milk is mainly a complex latex composed of water, fat, protein, lactose, minerals, vitamins, etc., where the moisture content is 86% to 90%, so its nutrient content is relatively low compared with other foods. The specific gravity of cow milk is 1.032 on average, and the specific gravity is related to the solid content in milk. In addition to the relatively large changes in fat content, the other components of milk are basically stable, so the specific gravity can be used as a simple indicator for evaluating the quality of fresh milk.
How Many Foreign Milk Brands in China?
There are more than 100 milk brands from over 30 countries, but lots of milk brand they do not have register at ‘GENERAL ADMINISTRATION OF CUSTOM, P.R. CHINA’. Why they can hot sell in China market? In TAOBAO, it’s very easy to find a shopping agent, called ‘DAIGOU’. In Australia, it's estimated there are 40,000 daigou. The baby milk formula is high demand in China, young lady would like to buy high quality baby milk formula. The TAOBAO Agent, DAIGOU, exist in many countries, they purchased milk products, food, honey, electronic product, cosmetic and so on, sent back to China earned huge profit, maybe up to 650%. If you want to increase turnover, why not try entering China market? If your Milk Farm or Milk Factory has own brand, do not hesitate to make a sales strategy and move it now, here are huge profit juice waiting you!
Setup distributor network
1.Setup Cubsidiary Corporation or find an Exclusive Agency in China
2.Setup secondary agency in each province
3.Setup Online sales strategy (Retail or Whole Sale, two channel with two different price strategy)
3.1 Retails:
Taobo.com
Jd.com
Tmall.com
Pinduoduo.com
Suning.com
Maigoo.com
Kaola.com
Vip.com
3.2 Whole Sale:
1688.com
hc360.com
vipmro.com
makepolo.com
gongchang.com
The above online website will help you find out distributors very easy. By the way, AMAZON is not the popular platform in China.
Conclusion
Asian market, especially China market, it’s very big potential with very good profit juice for every milk farm and milk factory. Entering China market is the key project in 2020-2025. Do not miss the chance. If you have any question, maybe we can share information related milk products market. Click here and write to us.
Reference:
Dairy Association of China
China Dairy Statistical Summary
White Paper Of China Dairy