Wang Yang: continuously improve the comprehensive production capacity and international competitiveness of the dairy industry

Continuously improve the comprehensive production capacity and international competitiveness of the dairy industry

Speech by Vice Premier Wang Yang at the D20 Summit of China's Dairy Industry

August 18, 2015

At the important juncture of the transformation and upgrading of China's dairy industry, we will hold this D20 summit of the dairy industry, and we will gather together to discuss the major issues of the development of the dairy industry, which is of great significance to build consensus, gather strength and promote the sustained and healthy development of the dairy industry. Here, I would like to express warm congratulations on the convening of the meeting. I would like to express my heartfelt thanks to people from all walks of life who have been concerned, supported and committed to the development of the dairy industry for a long time.

Dairy is the "closest to perfect food" given to human beings by nature. A glass of milk can feed a life and strengthen a nation. Dairy industry is an important part of agriculture and food industry, which plays an important role in improving dietary structure, strengthening national physique, optimizing agricultural structure and increasing the income of farmers and herdsmen. In recent years, great achievements have been made in the development of dairy industry in China. Milk output has crossed the 3 million ton mark and has become the third largest dairy producing country in the world. At present, the daily sales of milk on the market reach more than 200 million jin, and there are more than 21 million servings of milk consumed by students every day. In more than 30 years, we have gone through hundreds of years of dairy development in developed countries, and our achievements are not easy to come by, which is worthy of full recognition.

At present, the development of dairy industry in China is still in an important stage of great potential. The per capita dairy consumption in China is only 33 kg, which is only 1 / 2 of the world average and 1 / 2 of the average of developing countries. With the growth of population, the promotion of urbanization and the improvement of people's living standards, there is a huge space for the growth of milk consumption, which will bring very broad prospects for the development of the industry. However, it must also be noted that the development of the dairy industry is also facing the "labor pains" of transformation and upgrading, which is manifested in: some consumers lack confidence in domestic dairy products, the production cost is getting higher and higher, the price of raw milk fluctuates frequently, and the efficiency of dairy farming decreases. Dairy imports are increasing. The efficiency of some enterprises has declined, it is difficult to operate, and some places have even poured milk to kill cattle. Therefore, speeding up the transformation of the development mode of the dairy industry and vigorously promoting the construction of modern dairy industry has become a realistic and urgent issue in front of us.

Mature and developed dairy industry is one of the important symbols of agricultural modernization. The CPC Central Committee and the State Council attach great importance to the development of the dairy industry, and General Secretary Xi Jinping has given important instructions many times to place ardent hopes on the development of the national dairy industry, and Premier Li Keqiang has also put forward clear requirements for ensuring the quality and safety of dairy products, especially infant milk powder, which has pointed out the direction for us to build a modern dairy industry. In accordance with the policy decisions and arrangements of the central authorities, we should take improving the quality of dairy products as the core, speed up the transformation and upgrading of traditional dairy industry with modern material equipment, modern science and technology, modern industrial system, and modern development concepts, and constantly improve the comprehensive production capacity and international competitiveness of the dairy industry. Special attention should be paid to the following aspects of work:

First, we should strengthen the awareness of quality and reshape consumer confidence. Quality is the life of an enterprise. Without quality, there is nothing. The dairy industry has learned a profound lesson in this respect. Dairy enterprises should, as promised in this Beijing Declaration, resolutely implement the principle of quality first, put quality and safety in the first place in production and operation, cultivate product brands and establish corporate reputation just like birds cherish feathers. Governments at all levels should implement regulatory responsibilities, step up law enforcement, and create a fair and standardized market environment in accordance with the "four strictest" requirements of the most stringent standards, the strictest supervision, the strictest punishment, and the most serious accountability. It is necessary to continue to promote social co-governance, increase publicity on the quality and safety of the dairy industry, guide consumers to rest assured and consume healthily, build up high-quality and safe brands of domestic dairy products, raise consumer confidence, and open up a new future of China's dairy industry with quality transformation.

Second, we must adhere to market-oriented and innovation-driven development. With the gradual popularization of dairy consumption, the trend of market differentiation and diversification is becoming more and more obvious. the traditional extensive expansion has been difficult to sustain, and it is necessary to deeply study and actively adapt to the changes of market demand. we will accelerate product innovation, technological innovation, business philosophy and business model innovation. It is necessary to promote large-scale, standardization, facilities, and intensive production, strengthen scientific and technological support for variety breeding, epidemic prevention and control, and ecological and environmental protection, adjust and optimize production layout, enrich and improve product structure, and improve milk yield and quality. It is necessary to actively adopt new forms of circulation such as e-commerce, speed up the construction of cold chain logistics system, improve enterprise management, improve circulation efficiency, and reduce circulation costs. It is necessary to give full play to the role of the market mechanism, encourage enterprises to integrate resources through mergers and restructuring, speed up the elimination of backward production capacity, and enhance their ability to resist risks.

Third, we should promote the combination of agriculture and animal husbandry and extend the industrial chain. Dairy industry covers forage planting, dairy farming, dairy processing and other industries, suitable for the whole industry chain management. From the experience of developed countries in dairy industry, the integration of primary, secondary and tertiary industries is an important way and inherent requirement for the healthy development of dairy industry. "good grass is good, and good cattle produce good milk." It is necessary to do a good job in the construction of forage and feed bases, promote the return of manure to the field and fertilised land, explore the development model of the combination of agriculture and animal husbandry, open up the coordinated development channel of the planting and breeding industry, and promote the harmonious development of production ecology. The milk source base is the basis of the development of the dairy industry. It is necessary to innovate the industrial organization model and speed up the construction of vertical integration of planting and cultivation through the establishment of dairy farmers' cooperatives, the ownership of land and pastures, and the implementation of pasture management. Farmers and herdsmen and dairy enterprises are a community with a shared future. It is necessary to establish a reasonable interest linkage mechanism between enterprises and farmers and herdsmen so that farmers and herdsmen can share the fruits of dairy development.

Fourth, we should deepen foreign cooperation and achieve mutual benefit and win-win results. The openness of China's dairy industry is already very high. under the background of global economic integration and the acceleration of the construction of free trade zone, it will be more open and more deeply integrated into the international market in the future, which is the general trend and irreversible. To promote the modernization of the dairy industry, we must actively participate in the international competition of the dairy industry, learn advanced technology and management experience, practice the internal skills of the industry, and strengthen our own strength. With the opening up of the dairy industry, on the one hand, we should appropriately import dairy products to meet the diversified needs of domestic consumers; on the other hand, we should actively make use of overseas resources to enhance the production capacity and international competitiveness of enterprises.

To promote the healthy development of dairy industry, we need the joint efforts of all parties. Governments at all levels should actively promote the development of the dairy industry, strengthen support for scientific research and technological popularization, strengthen infrastructure construction, do a good job of market supervision, standardize market order, and provide a good environment for the development of the dairy industry. Enterprises are the main body of the development of dairy industry. To expand and strengthen China's dairy industry fundamentally depends on a number of innovative and competitive dairy enterprises and the joint efforts of the whole industry. The establishment of the D20 Enterprise Alliance of China's dairy industry is a positive exploration. It is hoped that the alliance will aim at communication, service, self-discipline and development, and be the connecter between the enterprise and the government, the promoter of mutual cooperation, the leader of standardizing the development of the industry, and the organizer of safeguarding the legitimate rights and interests of the enterprise. It is hoped that the alliance will strengthen its self-construction, improve the level of service, and constantly enhance its cohesion.

The enterprises participating in the D20 alliance are the leaders in the dairy industry. Today, we have signed the Beijing Declaration of D20 Enterprises, which has made a solemn commitment to the society in four aspects: quality and safety, brand building, integrity and self-discipline, and integrated development. it reflects the sense of corporate social responsibility and the mission of building a national dairy industry. I hope that you will do what you say and do, and make new contributions to promoting the modernization of the dairy industry. It is also hoped that through the platform of the summit, the great progress made by China's dairy industry in recent years will be shown to consumers, the quality and safety commitments of dairy enterprises will be told to consumers, and the confidence and determination of the whole industry to work together to build a modern dairy industry will be passed on to consumers.