March 30, 2007

Russian market a huge draw for China's dairy producers
 

Products from China's dairy industry have impressed Russian dairy producers in an exhibition and they were said to be "very interested" in forming partnerships with their Chinese counterparts.

Russia has a long history of consumption of dairy products, with per capitia consumption reaching 370 kg annually, among the highest in the world.

The attractive market presents numerous opportunities for China's dairy industry.

Market analysis by China's dairy producers revealed that there were several advantages inherent in the Russian dairy market.

Due to the vast expanse of land in Russia, the country enjoys good air quality, well-preserved grasslands and an environment relatively free from pollution. These are ideal conditions for raising milk cattle, a Chinese entrepreneur who participated in the exhibition said.

Russian enterprises are also eager to work with Chinese businesses to import Chinese dairy products into Russia or to form joint ventures to tap the Russian market.

Experts suggest that building a milk cattle operation in Russia would allow the strengths of Russian and Chinese dairy industries to complement each other.

Moreover, even as Russia has a large dairy consumption, there is a limited range of dairy products on offer in the market. Russian dairies also employ outdated production techniques. These factors provide Chinese dairy enterprises, who have focused on product and technology development in their native market, a huge advantage.