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Business Opportunity
To Set Up the Milk Production Bases Shows Enormous Business Opportunity in China
In recent years, the development of milk industry is very rapid in China. The total yield of milk has achieved to 12990 thousand ton. It is expected that the dairy market will maintain 15% of increase in the next 5 years and the increase rate of liquid milk will reach to about 30% per year.
At the present, many of these milk production bases have adopted the business model of ¡°enterprise plus farmers¡± to secure the milk supply and quality of the raw milk.
With this new business model has attracted some large investors to invest on dairy industry. Dongdawang in Mongolia, an enterprise, invested 360 million RMB yuan to build dairy farm to feed 70 thousand cows. Delong Group in Xinjiang, has planned to invest 2 billion RMB yuan to dairy industry in three years.
On the other hand, the smaller dairy farmers in rural are expending their production scale to become specialized dairy farming households and to achieve better economical return from the dairy production. This will also help the dairy processors to have more secure supply and better quality of raw milk.
The establishment of milk production bases by the Sanlu Group has strongly enhanced the development of dairy production in more than 80 counties and 2100 villages/town, which also assisted more than 32,000 rural households moved off from the poverty. On the other hand the development of dairy industry has influenced the development of related industries in the rural areas such as the crop production, feed industry, transportation industry, machine manufacture and others. The service system of animal health and medication in rural areas will be improved because the growth of dairy industry.
The Project of Pigs Farm Expansion
Project contents: Xinji City is famous for the livestock breeding and further processing. With the improving of people¡¯s daily life and the adjustment on the meal structure, the demand on the development of livestock industry is increasing; especially the breeding industry has the prosperous future. This project will expand the Xinan Pigs Breeding Farm. After this project, the annual sales will be 1.4 million USD with the profit of 370 thousand USD.
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