According the Research and Markets In 2005 the Chinese Dairy Industry maintained a strong growth rate and its operations improved compared with 2004. Dairy cattle inventory and raw milk production both also increased over 20%.

Dairy cattle and raw milk both endured a price correction period, and the dairy cattle industry returned to normal development from overheated development in the last few years. Dairy cattle import fell drastically affected by diseases abroad.

As to processing of dairy products, the sale volume of dairy enterprises in the first three quarters of 2005 reached 61.6 billion yuan, up 31% from same period in 2004. Annual sale volume is estimated to be near 80 billion yuan, up 25% from same period in 2004, slightly lower than last year's level. The gross profit of the dairy industry in the first three quarters was 3 billion yuan, adding 21% over the same period in 2004. Annual gross profit is projected to be 4 billion yuan, up 18% on 2004, a higher rate than last year's increase of 10%. The industrial profit margin in the first three quarters exceeded 10% and is expected to be 8% for the whole year, higher than 2004's level of 5.41%. New investment in 2005 was about 12 billion yuan, parallel to 2004.

In terms of the import and export of dairy products, on the one hand, dairy products supply in the international market declined and price remained high, especially in New Zealand where export price increased substantially. On the other hand, domestic demand for dairy products was weak while supply was abundant.

Concerning consumption of dairy products, generally speaking, per capita consumption volume of urban citizens in over half provinces saw negative growth, decreasing by near 3% all the year round. As regards policy perspective, changes regarding the "remade milk" label, released by State Council Office at the end of September, have greatly influenced and will continue influencing domestic dairy development.

The Research nad Markets report analyzes dairy production, consumption, market price, basic situation of import and export, market competition, relevant hot topics, policy direction and impact, development of main dairy processing and packaging enterprises in China and the development of the international dairy industry in 2005, there is also a forecast for the development trend of the Chinese dairy industry in 2006.

This is a rare report which shall be of great value for dairy producers, dealers and research institutes both at home and abroad in understanding the development trends of the dairy industry, in making decisions on the positioning of the enterprise and in formulating development strategies.