Wang Yang: dairy structure needs to be deeply adjusted.

On August 18, 2015 China Dairy D20 Summit was held in Beijing with the theme of "High Quality and Safe Development, Revitalizing China Dairy Industry". Wang Yang, member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, attended the summit and delivered a speech, pointing out that it is the general trend for China's dairy industry to further open up to the outside world. On the one hand, it is necessary to deeply adjust the domestic dairy structure to meet the diversified needs of domestic consumers; on the other hand, it is necessary to actively use foreign grass and cattle to produce milk for the Chinese.

Wang Yang's speech was widely regarded in the industry as setting the tone for China's future dairy import policy. Dairy expert Song Liang interpreted that the Deputy Prime Minister's instructions on imported dairy products can be understood as moderate import of dairy products and increase import of raw materials at the same time. "Moderate" imports may mean tighter dairy imports.

Public reports show that in the previous five years, China's dairy imports have maintained an increase of more than 20%, as high as 37% in 2013, and 17.9% year-on-year growth in 2014. On the one hand, the impact of imported dairy products, on the other hand, the high production cost of domestic dairy industry, frequent fluctuation of raw milk price, decline of individual enterprise benefit, frequent phenomenon of pouring milk and killing cattle everywhere.

Zhu Hangming, president of Guangming Dairy, believes that because the comprehensive cost of dairy farming in China is much higher than that of international peers in terms of land cost and environmental protection, and lacks international competitiveness, it is suggested that the state further formulate and issue support policies for dairy farming. In order to reduce costs and resist market risks, dairy enterprises including Bright Dairy and Wandashan have extended to upstream and downstream industries one after another, and industrial integration has become the annual "keyword" of Chinese dairy enterprises.