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Chinese dairy producers face overseas competition
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CNTV, September 21, 2011
A series of dairy scandals over the last few years, has shaken consumer confidence in locally made products. And with imports of overseas dairy climbing, Chinese dairy producers are facing greater challenges than ever. Let's take a look at what is being done to restore confidence.
![A keeper draws milk from cows on Youth Farm in Jeminay, Altay, northwest China's Xinjiang Uygur Autonomous Region, Sept. 20, 2008. [Xinhua]](http://images.china.cn/attachement/jpg/site1007/20110921/001ec94a1ee40fe37c3501.jpg "A keeper draws milk from cows on Youth Farm in Jeminay, Altay, northwest China's Xinjiang Uygur Autonomous Region, Sept. 20, 2008. [Xinhua]") |
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A keeper draws milk from cows on Youth Farm in Jeminay, Altay, northwest China's Xinjiang Uygur Autonomous Region, Sept. 20, 2008. [Xinhua] |
At a recent dairy fair in Beijing, overseas brands made up a large part of the show room. Authorities say dairy imports to China have grown by around 20 percent annually in recent years.
Yu Lu from China Chamber of Commerce, Food & Produce said, "In 2009, dairy imports climbed 70 percent from the previous year. In 2010, the growth rate of dairy imports was around 20 percent. During the first seven months this year, the figure has held at around 20 percent."
Following a series of product quality scandals in recent years, Chinese consumers are losing confidence in Chinese made dairy products. Take baby formula milk powder as an example. Industry insiders say 85 percent of the products available in China's big cities are foreign brands, while local brands are mainly being sold in smaller cities and villages. But domestic producers say they are not yet out of the picture.
Chen Wenming, sales manager of Chinese Dairy Product Company said, "We can feel the pressure. Consumers seem to trust and have more confidence in foreign brands. But I think our advantage lies in our understanding about the domestic market and consumer mind set."
In recent years, China has upgraded a series of policies to better control the quality of the country's dairy products in hopes of restoring consumer confidence.
