New Policies, New Situations, New Opportunities, and New Challenges - The Spring of Dairy Farmers Has Arrived
Jun 13,2018

On June 11th, the General Office of the State Council issued the "Opinions of the General Office of the State Council on Promoting the Revitalization of the Dairy Industry and Ensuring the Quality and Safety of Dairy Products". Article (11) proposes to support eligible breeding farms (households) to build processing plants and improve their ability to resist market risks.
This is the first time at the national level that support dairy farms to build their own factories to process and sell milk, indicating that in addition to sending milk to dairy companies, dairy farmers can also establish small central kitchens or processing plants for milk and yogurt processing according to actual situations, and finally transport the finished products to the market for sale.
The quality of self-produced dairy products on the farm is controllable, and there are no sales problems
The quality level of fresh milk in China currently ranks among the top in the world, laying a solid foundation for the production and sales of dairy products by ranches. The high-end liquid milk and yogurt currently promoted by dairy companies are not actually processed by dairy companies, but produced by ranches. The processing technology of many liquid milk is not complicated, and the processing equipment is provided by mature suppliers. It is feasible for large-scale farms to produce and sell their own dairy products, and the quality of the dairy products they produce is controllable.
Practice has proven that we have successful cases in the field of farm assets and dairy products. Pasteur milk and yogurt produced by the ranch sell well. In recent years, large-scale ranches in Shandong, Hebei, Liaoning, Yunnan and other provinces have opened many "fresh milk bars" for community residents to consume nearby, which has been welcomed by consumers.
Japanese Experience in Homemade Dairy Products on Pastures
In Japan, many ranches have small dairy processing equipment that produces pasteurized milk, yogurt, ice cream, cheese, and other dairy products. There are three main sales channels: first, self selling on ranches; The second is to open specialty stores in the city; The third is to sell through large supermarkets, airports, Shinkansen and other large supermarkets in the form of counters. Homemade dairy products on farms have received government support and consumer recognition, becoming an important feature of Japan's dairy industry development. As a result, there are many small and medium-sized enterprises in Japan, many of which process less than 2 tons of fresh milk per day.
During an interview with reporters, relevant leaders of the three national ministries and commissions responded to the implementation of the "Opinions of the General Office of the State Council on Promoting the Revitalization of the Dairy Industry and Ensuring the Quality and Safety of Dairy Products":
Q: In recent years, the development of the dairy industry has been highly valued. Is there a special opinion issued this time to promote the revitalization of the dairy industry? What are the considerations? What are the new goals and measures of the Opinion?
Answer: The Opinion is divided into 6 parts and 22 articles, clarifying the guiding ideology, basic principles, main goals, and major policy measures for the development of the dairy industry in the future period. It is a guiding document for the development of China's dairy industry in the future period.
One is to establish the strategic positioning of the dairy industry. The Opinion points out that the dairy industry is an indispensable industry for a healthy China and a strong nation, a representative industry for food safety, a landmark industry for agricultural modernization, and a strategic industry for the coordinated development of the primary, secondary, and tertiary industries.
The second is to clarify the goals and tasks for the development of the dairy industry. The Opinion proposes that by 2020, the supply side structural reform of the dairy industry will achieve substantial results, and the modernization construction of the dairy industry will make significant progress. The proportion of large-scale breeding of over 100 heads will exceed 65%, and the self-sufficiency rate of milk sources will remain above 70%. The quality, competitiveness, and reputation of infant formula milk powder will be significantly improved, and the supply of dairy products will be more in line with consumer demand; By 2025, the dairy industry will achieve comprehensive revitalization, basic modernization, and overall enter the world's advanced ranks.
The third is to highlight the requirements for high-quality development. The Opinion requires that, in response to the current problem of imbalanced and insufficient development of the dairy industry, with key links and key difficulties as the breakthrough point, efforts should be made to improve the quality and efficiency of the dairy supply system, and precise efforts should be made in key links such as the construction of high-quality milk source bases, dairy product processing and circulation, dairy product quality and safety supervision, and consumption guidance to better adapt to changes in the total amount and structure of consumer demand.
Fourthly, it emphasizes the protection of the rights and interests of dairy farmers. The Opinion proposes policy measures such as cultivating and strengthening professional cooperation organizations for dairy farmers, promoting the integrated development of breeding and processing, establishing a mechanism for negotiating fresh milk prices, conducting third-party testing pilot projects for fresh milk quality, and regulating the purchase and sales behavior of fresh milk, to enhance the ability of dairy farmers to resist market risks and share the achievements of modern dairy industry development.
The Opinion sends a strong signal to the whole society to revitalize the dairy industry, pointing out the direction and path for better development of the dairy industry. It has significant practical and far-reaching historical significance for promoting the sustainable and healthy development of the dairy industry.
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