Setting the record straight for domestic dairy, letting Chinese quality win trust
Recently, the China State Farms Dairy Alliance was announced in Beijing, marking another push by state farms in the dairy sector so closely tied to people's daily lives. Through collective development, standardized production and large-scale operation, they aim to provide consumers with higher quality, safer, fresher and more nutritious dairy products, and to elevate the standing of the national dairy industry in the hearts of Chinese people --
We must set the record straight for "Made in China" dairy products
"China's dairy industry faces problems of scale and efficiency, as well as the question of how to further improve dairy quality and people's confidence in consumption. This is both a challenge and an opportunity. Establishing the China State Farms Dairy Alliance is meant to enable state farm dairy enterprises to operate collectively, using the scale and resource advantages of state farms and the means of agricultural modernization to safeguard China's dairy market, raise the standing of the national dairy industry in the hearts of Chinese people, and thereby make the national dairy industry bigger and stronger." At the founding site of the China State Farms Dairy Alliance, Wang Shoucong, director of the State Farms Bureau of the Ministry of Agriculture, told reporters.
So, what advantages do state farms have in the dairy sector? Why did state farms choose this moment to establish a dairy alliance? What considerations do state farms have for making the national dairy industry bigger and stronger?
What are the advantages of state farms?
-- They laid the foundation for China's dairy industry in the past, and today they lead its modernization
"The state farm system played a key role in laying the foundation of New China's dairy industry." Gu Jicheng, secretary-general of the China Dairy Association, said that in the early 1950s, China had only 120,000 cows, and milk supply was extremely tight, requiring rationed supply by ticket. Under national deployment, the state farm system built milk source bases and dairy processing plants, making a historic contribution to the smooth start of China's dairy industry.
Through unremitting efforts, China's dairy industry has made great progress. Although it experienced hardships along the way, China's dairy industry has already risen to become the world's third-largest milk-producing country, and is advancing from a major dairy country toward a strong dairy country.
At present, China's dairy industry is undergoing profound changes. The state farm system has consistently remained at the forefront in dairy cattle breeding and improved breeds, pasture mechanization, standardization and large-scale operation, dairy industry integration, and dairy processing quality management.
It is reported that the mechanization and improved-breed rates of dairy cattle breeding enterprises in the state farm system have reached 100%. The per-cow milk yield levels of Beijing Sunlon Group, Shanghai Bright Group and Tianjin Jialihe Group all exceed 10 tonnes. A large number of state farm dairy enterprise brands such as Bright, Sanyuan, Wandashan, Tianyou, Haihe and Yantang occupy a relatively large market share and have built a good reputation among consumers. Today, the advantages state farms have accumulated in technology, improved breeds, quality, brands and group-based operation continue to play an important role in advancing the modernization of China's dairy industry.
Why establish a dairy alliance?
-- Operate collectively to build a full industry chain, exchange quality for a better price, and use quality to increase profit
"Establishing the alliance is meant to let everyone operate collectively, to let the alliance truly create value, to serve dairy enterprises and, more importantly, to safeguard consumers' rights and interests, and to be defenders of dairy quality and safety. Through beneficial exploration of the dairy industry, we will truly maintain the market well." Wang Shoucong said.
At present, the competitiveness of China's agriculture is relatively weak. The "floor" of agricultural production costs is rising and the "ceiling" of prices has capped out, so increasing both agricultural output and efficiency faces great pressure. China's dairy industry also faces a similar dilemma: scale and efficiency cannot rise, and many consumers still have certain concerns when choosing "Made in China" dairy products.
"We must confront the issues of safety and integrity directly. By establishing the alliance, we will push farms and enterprises in the reclamation areas to operate collectively, jointly safeguard China's dairy market, and use our actions to set the record straight for 'Made in China' dairy products." Wang Shoucong said.
According to reports, after its establishment the alliance will focus on exploration in the following areas: first, integrate resources to achieve scale, not only in dairy cattle breeding and dairy processing, but more importantly in operation and services, integrating dispersed forces through capital operations and industry services; second, regulate prices to stabilize the market, by building a full-industry-chain organization that links the upstream and downstream of the dairy industry and follows the path of integrated operation; third, build a safety and integrity system, exchanging quality for a better price and using quality to increase profit; fourth, collectively build the "China State Farms Dairy Brand", using the brand to reshape the image of the national dairy industry in consumers' minds.
Why should state farms carry the banner?
-- They possess land and other resources, own a number of major-brand enterprises, and have organizational and industrialization advantages
"State farms were born for the national mission. They are the 'national team' in agriculture. Their position is indispensable and their role irreplaceable. Especially in advancing the building of a moderately prosperous society in all respects and agricultural modernization, state farms must undertake the fundamental mission and responsibility of driving rural development, so naturally they must also make efforts to make the dairy industry bigger and stronger." Wang Shoucong said.
China's dairy industry started with state farms, and state farms are currently undergoing reform. How to give play to the leading role of flagship enterprises such as Bright, Sanyuan and Wandashan, how to unite to become stronger and bigger, and how to form a combined fleet -- state farms have both the conditions and the strength to achieve these goals.
State farms have resource advantages such as land, as well as organizational advantages, and can absolutely make the dairy industry bigger; state farms have enterprise-based and group-based advantages, and can absolutely make the dairy industry stronger; and state farms have standardization, large-scale and industrialization advantages, and can absolutely make the dairy industry better.
It is reported that after its establishment, the alliance will focus on building a standards system, an industrial system, a quality system and a safety and integrity system. In particular, it will put dairy quality and safety first, strengthen quality control from dairy cattle feeding and dairy processing to dairy transport and sales, and safeguard dairy quality and safety by establishing a sound institutional mechanism, so as to reshape a healthy dairy market.
Where should the revitalization of the dairy industry start?
-- Give play to resource advantages and make fresh milk better and more refined
After the establishment of the China State Farms Dairy Alliance, it will focus on building China State Farms fresh milk as its flagship product.
"We must attach great importance to promoting fresh milk. Fresh milk is the ballast stone for enhancing the competitiveness of China's dairy industry, the killer weapon for responding to international competition, and the catalyst for advancing integrated dairy operations. At the same time, Chinese dairy enterprises must have an international vision and aim at the international market." Wang Shoucong said.
According to reports, next the alliance will focus on establishing four systems, namely the standards system, the brand system, the quality traceability system and the testing system. It will focus its work on five "joint" areas: first, do a good job in planning and establish a standards system; second, implement joint procurement and joint investment; third, jointly carry out technological innovation and jointly build its own dairy innovation center; fourth, jointly carry out talent training; fifth, promote joint services, such as expert consulting services and information services, solving market supply and demand problems through big data, and solving price problems through the spot market and the futures market.
For the rise of the dairy industry, quality is the ballast stone
At present, the prominent problems facing the development of China's dairy industry are the continuous decline in milk prices, the difficulty dairy farmers have in selling milk, and the pressure of high inventories faced by dairy enterprises. To solve these problems, in addition to focusing on standardization, large-scale operation and industrialization, it is even more necessary to firmly establish a sense of quality and safety in all links from dairy cattle feeding and dairy production to transport and sales.
To achieve the rise of China's dairy industry, dairy quality can be called the ballast stone. Our national dairy industry can no longer afford even the slightest incident. This requires both improving the quality of dairy farmers and their feeding levels, and comprehensively enhancing the quality and safety awareness of dairy enterprises, including the formulation of standards and systems and the upgrading of process equipment.
Only with excellent quality can we win consumers' trust and reputation, and only then can we be qualified to compete on the same stage with foreign dairy enterprises and enhance the overall competitiveness of China's dairy industry. After several years of effort, the infant formula milk powder among China's dairy products has improved markedly and has quality assurance, but it will still take a relatively long process for consumers to increase their trust.
In recent years, China's dairy production fluctuations have intensified, showing a "now up, now down" pattern. The difficulty dairy farmers have in selling milk stems from dairy enterprises raising the threshold for raw milk quality. Large-scale farms above a designated size, with standardized breeding operations and stable raw milk quantity and quality, are relatively less affected.
Therefore, it is necessary to guide and support dairy farmers in shifting from scattered breeding to centralized feeding. Pasture breeding enterprises should adhere to combined crop-livestock development, actively take equity stakes in dairy cattle farms, and accelerate the transformation and upgrading of the dairy industry. Dairy enterprises should treat dairy farmers well, strictly honor contracts to purchase raw milk, and through measures such as equity participation, mergers and acquisitions, and trusteeship to upgrade farms, improve the interest linkage mechanism between dairy enterprises and dairy farmers, help dairy farmers improve feeding levels, and enhance milk source quality.
At present, it is necessary to further do a good job in top-level design and in the formulation and revision of systems, guide the transformation and upgrading of the dairy industry, encourage enterprises to extend the industry chain forward and backward, comprehensively utilize factors such as land, pastures, talent, management, the internet and capital, and support enterprises in exploring the path of integrated operation of "planting, breeding, processing, sales and services".
In addition, it is necessary to increase positive publicity, boost consumer confidence, enhance the image of the national dairy industry, and create a good atmosphere for dairy consumption.