Showing posts with label for the test. Show all posts
Showing posts with label for the test. Show all posts

Friday, May 8, 2020

China's dairy farmers face the problem of low milk purchase prices and rising costs

With the global outbreak of the new coronary pneumonia epidemic, reports such as "American milk farmers dumping milk" are frequently reported. Under the background that the domestic epidemic situation is basically controlled, the reporter learned that in most regions, dairy farmers are still burdened with raw material price increases and downstream milk collection prices are "two big mountains", and they hold a wait-and-see attitude toward future development.
Dairy farmers survive the "dark moment"
At the beginning of the outbreak, due to many factors such as insufficient consumption in the downstream of the dairy industry and poor for the test transportation, a large area of ​​milk was unsalable in China. According to data released by the China Dairy Industry Association, as of February 7, more than half of the dairy farms in China experienced a feed shortage, large dairy processing plants began to spray powder, and corporate sales fell year-on-year.
At present, with the outbreak of foreign epidemics, the news of "American dairy farmers dumping milk" is frequently reported. In contrast, dairy farmers in China have survived the "dark moment." At the end of February this year, Li Shengli, chief scientist of China's dairy industry technology system, once said that with the gradual improvement of domestic traffic, the transportation of dairy companies has been basically smooth. Dairy expert Song Liang told reporters from China Business Daily that in the past month or two, the state and local governments have given a lot of policy support to agriculture and animal husbandry, and the production of agriculture and animal husbandry is gradually recovering.
The relevant person in charge of China Shengmu Organic Dairy Co., Ltd. (hereinafter referred to as Shengmu) told a reporter from China Business Daily that as a large animal husbandry company, Shengmu has stable contract protection and is relatively less affected by the epidemic. In fact, Shengmu ’s pastures have been resumed after the Spring Festival, and transportation has been affected when the epidemic is serious. However, the transportation has returned to normal, and the amount of fresh milk powder sprayed by the company ’s pastures is very small and can be ignored.
Low milk price
But many small pastures in China are not as "lucky" as Shengmu. "Currently, the price of milk received by downstream dairy companies for us is 3.2 yuan / kg, which is 0.7 yuan / kg lower than before the epidemic," Wang Ming (pseudonym), a rancher in Qingdao, Shandong, told a reporter from China Business Daily. Wang Ming independently manages a small pasture of more than 160 cows. Although the amount of milk received is basically guaranteed, the price of milk is significantly lower than before the epidemic.
There are not many ranchers similar to Wang Ming. Li Li (a pseudonym), a rancher in Ningxia, also told a reporter from China Business Daily that at the end of last year, the price of milk received by downstream dairy companies was around 3.9 yuan / kg, and the price of milk received in January this year fell slightly to 3.77 yuan / kg. However, in February after the outbreak, the price of milk received fell steeply, reaching 3.1 yuan / kg. The milk payment in March has not yet arrived. It is estimated that the price of milk received in March will be around 3.3 yuan / kg. But it is only just covering the cost.
In fact, Song Liang admitted that due to the current poor sales of downstream dairy companies, the willingness of dairy companies to collect milk is not high, and the price of milk collection for upstream is generally low, and many small and medium-sized farmers have suffered serious losses.
Li Chuanshui, the legal person of Shandong Zibo Rongying Animal Husbandry Co., Ltd. (hereinafter referred to as Rongying Animal Husbandry), told China Business Daily that at the end of last year, the price of milk received by downstream dairy companies was 4.3 yuan / kg, but now it has dropped to 3.5 yuan / kg. The determination of the price of 3.5 yuan / kg milk collection is also based on the scale of Rongying's 1000 cows and the quality of the company's products. According to him, the company's raw milk is supplied to downstream manufacturers for the production of high-end milk. The indicators such as the number of somatic cells and the total number of colonies are high. The company has received many rewards, and the milk price is considered high locally. In fact, dairy companies currently receive milk prices of only 2.9-3.2 yuan / kg for many small local farms.
High cost and low profit Dairy farmers hold a wait-and-see attitude towards future development-China Business Network | China Business Daily 0

The highest increase in raw materials reached 15%.
In addition to lower milk prices, another “big mountain” that weighs on small and medium pastures is the rise in raw material prices. Li Li told a reporter from China Business Daily that after the Spring Festival, prices of raw materials including cottonseed, sugar beet pellets, and imported alfalfa have risen, especially imported alfalfa, which has risen from the previous 3,000 yuan / ton to the most recent 3,250 yuan / ton.
Li Chuanshui also admitted that after the Spring Festival, raw materials began to rise in price, mainly including soybean meal, imported alfalfa, corn, etc., among which the price increase of corn started after the occurrence of foreign locust disasters. He revealed that small and medium ranchers have a relatively low demand for raw materials and will not negotiate prices directly with raw material suppliers, but will go through distributors. The reason for the large increase in raw material prices this time is the malicious hype of distributors during the epidemic.
Specifically, Li Chuanshui revealed that soybean meal has risen from the ex-factory price of 2820 yuan / ton to the highest point of 3400 yuan / ton, and slightly decreased in April. The current price is about 3240 yuan / ton. Corn rose from 1,900 yuan / ton to 2,100 yuan / ton, corn flakes rose from 2,060 yuan / ton to 2,200 yuan / ton, and imported alfalfa increased by about 100 yuan per ton. For the test, a China Business Daily reporter calculated that the current price of soybean meal, which has the highest price increase, is now 15% higher than before the outbreak.
At present, dairy farmers who bear the "two mountains" hold a wait-and-see attitude towards future development. As Li Li said, dairy farmers do not know the future development trend of the industry and dare not blindly expand production.

Bright Dairy's fresh strategic achievements are remarkable

China Food Safety News April 20, Bright Dairy released its 2019 annual performance report. During the reporting period, it achieved total operating income of 22.563 billion yuan, an increase of 7.52% year-on-year; realized net profit of 682 million yuan, an increase of 29.60% year-on-year; The net profit of the owners of the parent company was 498 million yuan, an increase of 45.84% year-on-year; the return on net assets was 9.03%, an increase of 2.75 percentage points year-on-year. In 2019, Bright Dairy adheres to the strategy of focusing on low temperature. By strengthening brand influence, strengthening industry linkages, and promoting digital transformation, multiple measures have achieved remarkable results and achieved steady growth in company performance.
In 2019, Bright Dairy challenges itself in for the test the quality management of the entire industry chain, actively implements high-quality dairy projects, and establishes the highest freshness guarantee standard covering the entire industry chain; adhering to the ingenuity of endless pursuit of quality, "Guangming PAI "The system was upgraded to the" Bright EQMS Excellent Quality Management "system, opening a new chapter in the construction of a quality governance system. While developing itself, Bright Dairy is also committed to promoting the high-quality development of the industry, actively displaying the industry's benchmark image, and contributing bright power to China's high-quality dairy projects. It is worth mentioning that in October 2019, at the 25th International Conference of the Asia Pacific Quality Organization (APQO) and the 2019 Global Excellence Awards ceremony, Bright Dairy won the 2019 Global Excellence Award (world-class) ), Becoming the first company in the Chinese dairy industry to receive this award. Bright Dairy upholds the ingenious spirit of endless pursuit of quality, allowing the world to see the persistent efforts of Chinese dairy companies on quality management.
For Bright Dairy, for the test, quality is the root and brand is the soul. A glass of milk reaches the hands of consumers, and behind it is a strict quality control system. The whole process needs to pass through 808 to 1581 quality control points in all aspects. Bright Dairy will continue to lead the quality of Chinese dairy products to match the world's quality level, so that every sip of bright milk that Chinese people drink is of excellent quality against world-class standards.
Focus on the advantages of fresh products and strengthen the influence of leading fresh products
The Consumer Index for 2019 released a set of survey data showing that 40,000 households in the mainland of China were taken as a sample survey to conclude that Bright Dairy ranks first in the national fresh milk market and leads the high-end process of the fresh milk market. . For a long time, Bright Dairy has advocated consumers to drink fresh milk with a storage temperature of about 4 ° C and a shelf life of 7 days to lock in more fresh nutrition for consumers' health. For Bright Dairy, it is not only a provider of fresh milk, but also a guarantor of consumers' daily lives. In 2019, Bright Dairy has successively convened and hosted the "Leading Times, Fresh Future" Leading Freshness Achievement Conference, "Fresh Live New Rising" Bright Fresh Category New Product Launching Conference, 2019 China Dairy Industry D20 Summit, the first China Dairy Industry "Fresh Summit" , Promote the promotion of the "fresh pasteurized milk" national standard, so that the active substance index becomes the first standard of fresh pasteurized milk.
Freshness is a mission to empower the brand for Bright Dairy, and a commitment to quality. With Bright Dairy's continuous digging into "freshness", Bright Dairy has a perfect "layout" in the "fresh" field, creating a unique leading advantage in the three major sectors of the industrial chain, new retail and services. With the strong advantage of the only national key laboratory of biotechnology in the domestic dairy industry, Bright Dairy has created the top-end high-end fresh milk product "Zhiyoujuan Fresh Milk", and the bright milk brand "Yoube", a brand of fresh milk, has launched a number of new products to let Consumers have more fresh choices.
With the further improvement of cold chain transportation in the future, consumers' requirements for milk quality are increasing, especially the pursuit of fresh milk. Pasteurized milk is the main driving force for the future growth of the liquid milk market. Consumers' pursuit of freshness will promote the high-end products. Bright Dairy's "fresh" initiative, following the trend, the development of the future is very worthy of recognition and expectation.
Accelerate the integration of superior resources and ignite innovation and new vitality
In 2019, Bright Dairy invested 150 million in marketing expenses, mainly used for Daguangming brand promotion. Bright Dairy exclusively sponsors CCTV's "China in a Story" column to pay tribute to classics, relive fresh stories, and release the value of the bright brand nationwide; its key brand Mosleyan officially announced the new brand spokesperson Liu Haoran in 2019 , Launched the new Michelin Star Kitchen Dessert series, launched the upgrade and rejuvenation campaign, made the brand image more youthful, and promoted the brand renewal through product line and marketing upgrades.
It is worth mentioning that, since the end of 2018, Bright Dairy acquired 66.27% of the milk shed and 100% of Yimin Food No. 1 Factory, and the various sectors have rapidly merged. Through enriching the product line and expanding the market, the bright brand has been upgraded. On the one hand, all milk sheds have bright products on the whole line, and they have become the display and sales platform for the products of the bright dairy industry; The sought-after net red ice cream integrates the advantages of bright dairy products, milk source and brand, and the benefits of Yimin ice cream products. It also complements seasonality and increases the distribution of bright dairy ice products. In September 2019, the first high-end bakery store, "Yu Bakery", opened, which was another offline implementation of the product layout after Bright Dairy entered the cold beverage market. With the upgrade and improvement of the entire industrial chain, while steadily advancing the factory's production capacity improvement and product upgrade planning, Bright Dairy has fully exerted the strong driving force of "brand integration, industrial chain integration, and advantage integration" in the future.
While achieving close integration of various sectors, Bright Dairy actively embraces new retail and promotes the company's digital transformation. In November 2019, Bright Dairy and Alibaba Cloud Computing Co., Ltd. formally reached a strategic cooperation to jointly promote Bright Digital Transformation. Bright Dairy will use the new marketing ideas to actively integrate online resources and comprehensively create a new omni-channel marketing model.
Strengthen sector linkage, investment, mergers and acquisitions set sail again
In terms of investment and mergers and acquisitions, Bright Dairy is also accelerating plans for a new pattern. Based on the consideration of the strategic layout of milk sources and the consolidation of the competitive advantage in East China, in December 2019, Bright Dairy successfully bid for Jiangsu Huishan Dairy and Jiangsu Huishan Animal Husbandry-related assets, making the development of Bright Dairy's animal husbandry product sector more balanced. East China is the core market of Bright Dairy. Consolidating the number of cows in East China will help Bright Dairy improve the layout of milk source bases in East and North China, expand markets in Jiangsu, Shandong, and Anhui, and further expand and strengthen the dairy industry.
In 2019, Bright Dairy's overseas business has also entered the harvest period. New Wright's key financial indicators remained stable, with an operating income of 4.955 billion yuan and a net profit of 297 million yuan. While maintaining a relatively high proportion of infant formula milk business, New Wright has added other daily dairy products and entered domestic supermarket channels to further expand its rich product line; the new liquid milk production line and the infant milk powder production line in North Island have been partially invested Operation; at the same time, actively explore diversified financing channels, reduce financing costs, and optimize the capital structure. New Wright successfully completed bond issuance in New Zealand. By locking in lower financing costs and reducing the impact of interest rate fluctuations, it will contribute more to the future income of Bright Dairy. Increment.

In 2019, Bright Dairy took the initiative to actively undertake corporate social responsibilities, and launched a green campaign to recycle milk cartons across the city. Consumers can collect 10 milk cartons of any brand and exchange them for Bright Urgo Milk. In addition to recycling milk cartons for dairy products, Bright Dairy has designed and adjusted the packaging of milk cartons, added garbage classification labels, and made milk carton recycling less “detours” to promote the recycling of milk cartons. In just half a year, the milk carton recycling city-wide green action effectively covered 500,000 people, with a total of 1.23 million milk carton recycling, which is equivalent to the height of 20 Everest. Bright Dairy does not restrict the brand of recycled milk cartons, and is dedicated to encouraging consumers to develop the habit of recycling milk cartons, which has been highly praised by all sectors of society and highlights the brand's public welfare mission.

Bright Dairy is in action to fight against the new crown pneumonia epidemic
During the fight against the New Crown Pneumonia epidemic, Bright Dairy assumed corporate social responsibility and dedicated its bright power. After the epidemic occurred, Bright Dairy immediately donated various materials with actual actions to pay tribute to the frontline anti-epidemic heroes and their families. In Wuhan, the main battlefield against the epidemic, Bright Dairy became the only dairy product company in the country that insisted on production and market supply during the epidemic. In other areas where the epidemic is relatively stable, Bright Dairy has overcome difficulties, made full use of its power, and guaranteed supply. During the epidemic, the daily output of fresh milk at the East China Central Factory of Bright Dairy exceeded 700 tons. Bright Dairy also actively uses its own e-commerce platform and logistics advantages to launch vegetable and meat distribution services on the Xuanxuan platform, and promotes the sales of Baihe strawberries with zero-profit public welfare to solve the worries of berry farmers.

Persevering in centuries of ingenuity is the responsibility of Bright Dairy. Bright Dairy started in 1911 and has now spanned a century of history. It has witnessed the changes of the times in the 70th anniversary of the founding of New China, experienced the great changes in the 40th anniversary of reform and opening up, and accompanied the healthy growth of generations of consumers. From letting consumers drink milk to letting consumers drink good milk, Bright Dairy is determined to pursue quality. A bright brand with a hundred years of history must forge ahead on the road of innovation and development.