June 14, 2011

China's milk production capacity is expected to reach 40 million tonnes this year from 35.75 million in 2010.

According to statistics, in terms of production and price, Chinese milk processing industries have recovered to the level before the melamine crisis in 2008, except for production of infant's formula.

From August 2009 to May 2011, price of raw milk increased from RMB2.30 (US$0.35) per kg to RMB3.20 (US$0.49) per kg, a leap of 39.1%. In 2010, consumer spending of milk products in 36 large and medium-sized cities averaged RMB277 (US$42.77), rising by 40%, in contrast with 2006.

Presently, sales revenue of liquid milk of Mengniu and Inner Mongolia Yili Industrial Group Co Ltd has increased between 10% and 20%.

As for baby's milk, foreign brands are also playing a leading part. In first half year of 2011, China imported 300,000 tonnes of baby's milk.