How to revitalize China's dairy industry? Han Changfu stresses quality and safe development
Minister of Agriculture Han Changfu speaks on August 18, 2015 at the China Dairy D20 Summit
I am very pleased to attend the China Dairy D20 Summit. The dairy industry is an emerging industry in China and an industry that society pays close attention to. In recent years, China's dairy industry has accelerated its development and has become one of the most dynamic and fastest-growing industries in the development of modern agriculture and the food industry.
First, production capacity has reached a new level. At present, China's dairy cow herd has reached 14 million head, and milk output has stabilized at 35 million-38 million tons, ranking third in the world. Per capita dairy consumption increased from less than 1 kg in 1978 to 33.8 kg in 2014. Dairy products on the market now come in complete varieties and are in ample supply, and have become daily consumer goods for people.
Second, the mode of production has achieved new changes. In 2014, the share of dairy farms with more than 100 cows nationwide reached 45%, and the mechanized milking rate reached 90%, up 25 and 39 percentage points respectively from 2008. There were more than 1.3 million high-yielding dairy cows producing over 9 tons per year, and the situation of “small, scattered and low” farming was reversed. The integrated operation of breeding, farming and processing has been accelerated. There are already 13,000 dairy farmer professional cooperatives nationwide, and dairy enterprises' self-built and equity-participating milk source bases account for more than 20%. Enterprises such as Yili, Mengniu and Bright Dairy took the lead in “going global” and began to establish milk source bases in Oceania, Europe and the Americas.
Third, quality and safety have achieved new improvements. The Ministry of Agriculture has implemented a raw milk quality monitoring plan for 7 consecutive years. The pass rate of spot checks for prohibited additives such as melamine has remained at 100%, and the milk protein and milk fat content of raw milk from large-scale pastures is substantially higher than the national standard. In recent years, multiple products from several Chinese dairy enterprises have won awards in international dairy quality evaluations or passed certification by authoritative international institutions. These fully demonstrate that we are fully capable of producing safe and high-quality dairy products.
Fourth, new progress has been made in laws and regulations. The State Council and relevant ministries and commissions have successively promulgated and implemented more than 20 rules and regulations, including the Outline of the Plan for Dairy Industry Rectification and Revitalization and the Regulations on the Supervision and Administration of Dairy Product Quality and Safety. They have published 66 new dairy product quality standards, including the national standard for Raw Milk, and introduced 6 major policies, including those promoting standardized large-scale dairy cow farming and the action to revitalize the development of dairy alfalfa. A policy system covering forage and feed, improved breeds, and pasture construction has initially been established.
While seeing the achievements in China's dairy industry development, we must also clearly recognize that the current development of the dairy industry also faces many difficulties and challenges. The product quality of individual dairy enterprises is not high, consumers still lack confidence in domestic dairy products, the inversion of domestic and international dairy product prices has led to greater import shocks, and resource and environmental constraints are tightening, among others. To overcome these difficulties and challenges, we must hold high the banner of “quality and safe development.” We must not only feel pressure, but also take responsibility, resolve to raise the banner and draw the sword, revitalize China's dairy industry, and rebuild the confidence of the Chinese people.
China's dairy industry must follow the path of quality and safe development, insisting on promoting production development with one hand and quality and safety supervision with the other, putting quality first and safety above all. It is necessary to strengthen variety improvement, quality enhancement and brand creation, advance scale, intensification, standardization and industrialization, and build an integrated development model of breeding, farming and processing. Focusing on developing a modern dairy industry, we should build five major systems well:
First, accelerate the building of a modern dairy industry quality supervision system. Quality is the lifeline of the dairy industry. We should adhere to “paying equal attention to production and management, with enterprises as the main body and departments working in coordination,” implement the primary responsibility of dairy enterprises, and strictly control every stage of dairy product production, processing and circulation to ensure that every drop of milk on the market is safe and reassuring. At the same time, agricultural departments will strengthen collaboration and coordination with food and drug, industry and information technology, quality inspection and other departments, connect seamlessly, and jointly manage together to form a strong force safeguarding the quality and safety of dairy products.
Second, accelerate the building of a modern dairy industry system. Strengthen planning guidance, optimize production layout, stabilize the main northern production areas, develop emerging southern production areas, and promote rational layout and coordinated development of milk sources and processing. Optimize and adjust the dairy product structure, stabilize high-temperature milk production, vigorously develop local advantageous products such as pasteurized milk and yogurt, and develop high-value-added products such as cheese. Continuously innovate circulation methods, actively develop new marketing models such as “Internet+,” and meet the people's demand for convenient and quick dairy product consumption.
Third, accelerate the building of a modern dairy production system. Actively promote improved dairy livestock breeds, high-quality forage, facility-based farming and standardized production, deeply implement the dairy cow genetic improvement plan, continue the action to revitalize the development of dairy alfalfa, vigorously promote the production of dedicated silage corn and the pilot of replacing grain with feed, and accelerate the renovation and upgrading of farming communities. Strive to reach by 2020 a national high-quality alfalfa output of 3 million tons, more than 3 million head in high-yielding dairy cow herds, and a proportion of dairy cow large-scale farming with more than 100 cows exceeding 60%.
Fourth, accelerate the building of a modern dairy operation system. Vigorously improve the degree of organization in the dairy industry, support the joint development of large-scale pastures, family pastures and dairy farmer cooperatives, encourage dairy enterprises to self-build, take equity in, acquire and entrust pastures and farming communities, and improve the interest linkage mechanism between dairy enterprises and dairy farmers in terms of raw milk pricing, sharing of production, processing and sales benefits, and sharing of risks.
Fifth, accelerate the building of a modern dairy support and protection system. Further improve support policies for the dairy industry, increase support in finance, banking and insurance, and strive to cultivate large enterprises and large brands. Improve the early warning mechanism for production and consumption to prevent sharp fluctuations in production and prices. Widely carry out science popularization publicity that “drinking milk is good for health,” implement the liquid milk labeling system, and create a fair and orderly market environment.
Dairy enterprises are the cells of dairy industry development and are the promoters and practitioners of quality and safe development of the dairy industry. In particular, the top 20 Chinese dairy enterprises participating in the summit are the vanguard and bellwethers driving quality and safe development of the dairy industry. The joint signing of the Beijing Declaration by these 20 enterprises is an important measure to strengthen industry self-discipline and also a solemn commitment to revitalize China's dairy industry. We are very pleased to see that enterprises have such ambition and sense of responsibility. Taking this opportunity, I would like to offer three hopes for dairy enterprises:
First, resolutely ensure quality and safety and enhance competitiveness. Dairy enterprises should make ensuring the quality and safety of dairy products a top priority matter concerning the life and death of the enterprise, strictly produce according to standards, strengthen quality control, improve enterprise management, produce high-quality and safe products, actively create first-class brands, and form new comprehensive competitive advantages centered on technology, brand, quality and service.
Second, effectively strengthen industry self-discipline and build a harmonious dairy industry. Practice the industry development concept of “cooperation, harmony and win-win,” strengthen the building of industry self-discipline mechanisms, further improve industry rules and conventions, strive to implement the common declaration released at this summit into concrete actions, and consciously accept supervision by the government, society and consumers.
Third, be brave in assuming social responsibility and lead the development of the industry. Practice the social responsibility of serving the industry and repaying consumers, improve the interest linkage mechanism, and drive dairy farmers to increase income and become prosperous together. In particular, in response to the current “difficulty in selling milk” in some places, it is hoped that dairy enterprises will guarantee purchases according to contracts, treat dairy farmers well, and no longer allow incidents in which enterprises refuse to buy fresh milk and dairy farmers dump milk and slaughter cows.
When many people gather firewood, the flames rise high; when we unite and strive, the dairy industry thrives. Let us join hands, build consensus, firm up confidence, forge ahead, promote quality and safe development of the dairy industry, and make new and greater contributions to revitalizing China's dairy industry.
(This is the speech by Minister of Agriculture Han Changfu on August 18, 2015 at the China Dairy D20 Summit.)
