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San Francisco, CA (PRWEB) February 16, 2013
After strong and steady growth for more than a decade, China's dairy industries were severely affected by the melamine scandal of September 2008, when melamine was found in infant formula and other milk products. This major incident led to the bankruptcy of Sanlu, the largest milk powder producer in China, and plummeting confidence in domestic dairy brands. International trade was also affected as exports dropped to almost zero and imports increased sharply. Over the five years to 2012, revenue for the Dairy Product Production industry in China grew at an annualized rate of 14.6% to $43.3 billion.
There are about 750 enterprises operating in this industry, most of which are small or medium in size. The four largest enterprises, Mengniu, Yili, Bright and Sanyuan, jointly account for about 42.9% of industry revenue in 2012, showing a moderate industry concentration level. The concentration level differs across regions and is higher in provinces in the North East China and North China regions.
China is currently the third-largest dairy producer in the world, after India and the United States. However, per capita consumption of dairy products in China is less than one-quarter of the global average and lower than in many other developing countries, largely due to Chinese dietary patterns and lower living standards. Moreover, dairy product consumption varies considerably across China. Demand is very high in urban areas but per capita consumption in rural regions is less than 10.0% of that in urban areas.