Critical Impact of Latest Quality Issues and China Dairy Market Economic Overview: Comparative Analysis

By Zheleznov, Andrew; Zheng, Jia | Asian Social Science, January 2015 | Go to article overview

Critical Impact of Latest Quality Issues and China Dairy Market Economic Overview: Comparative Analysis


Zheleznov, Andrew, Zheng, Jia, Asian Social Science


Abstract

Although general Chinese economy now is growing fast and takes leading positions in the world, its dairy industry comes across several difficulties. It sustained a number of losses after a series of well-known incidents involving food safety. It is certain that paramount mission of the current market conditions requires extensive studies of critical impact caused. The situation with different dairy products varies, and that's why the author describes in details the milk, cheese, and yoghurt markets. Also it is compared to the markets of Western Europe, Russia, India, New Zealand, Australia, America and Canada. This work attempts to analyze contemporary market situation in a retrospective contemplation of the corresponding dynamics and course of economic and public events, including basic trends, business analytics and adjacent studies in an endeavor to discover and situate a better economic mechanism for the given field. The most considerable result is development of economic and business recommendation that are bound to improve the problematic situation.

Keywords: China, dairy industry, market comparative analysis, quality issues, loss estimation, safety measures and standards, critical impact

1. Introduction

China currently has one of the largest economies, its sustained rapid growth drives it to the 2nd place in the world measured by major indexes such as purchasing power parity, nominal GDP and growing pace (CAGR and other relative methods) (Report, 2013). Since the very moment this country fully joined the world's open market, it started intensively develop all kinds of industries and dairy was no exception from that.

Most of domestic dairy products in China originate from ten provinces that provide roughly 70% of dairy output: Inner Mongolia, Heilongjiang, Henan, Shaanxi, Shandong, Hebei, Jiangsu, Sichuan, Liaoning and Anhui. In a pursuit to increase national dairy production, the government has aggregated these provinces into five dairy regions based on their local conditions and opportunities.

Northeast and Northern areas target to develop milk powder production, cheese, butter and UHT milk; mainly this production is planned to be carried out from large private farms. Western area is designated to production of local specialties such as donkey, goat, yak and camel milk that is not accessible regularly elsewhere in China. Southern region is going to provide pasteurized milk, cheese and yoghurt, as well as protein powder. Large-city surrounding regions, though being geographically separated (Shanghai, Beijing, Chongqing etc), tend to produce pasteurized milk and yoghurt as long as these products are easier to produce in the given conditions (Woolsey, 2010).

Currently the course of dairy industry in China (as well as government politics in this field) is related to increase its outputs up to 48-55 million tons by doubling number of cows and increasing yield per animal (KKR's, 2013). This task is planned to be carried out through increase of cow farms; according to median data, the estimated increase is supposed to be at average 30% higher than today's numbers.

After a number of dairy-related scandals, a lot people in China seem to lose trust in local products, resulting in increased consumption of imported milk, cheese and yoghurt. Dropped revenues made Chinese domestic producers raise prices to the level of imported products.

This was followed by government introduction of tougher regulations on import of dairy products (Wang, 2013).

Foreign producers were given a one-year grace period from the moment of introduction to maintain necessary measures and comply with new standards. However, some sources state that detailed registration procedures and formalities were not released in a timely manner, and currently there is no sustainable information available on the quantity of firms and enterprises that eventually complied.

The history of Chinese dairy standards evolution since early 2000s includes a number of measures, all having direct economic effects to the industry. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Critical Impact of Latest Quality Issues and China Dairy Market Economic Overview: Comparative Analysis
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.