China Blueprints the 14th Five-Year Plan of Dairy Industry

On Feb. 3rd, 2021, China Dairy Association held the meeting discussing the preparation work of drafting the “14th Five-Year Strategic Development Guidance of China Dairy Industry”. This document expects to be published on the 12th Dairy Conference of China & 2021 China Dairy Exhibition.

Achievements of "13th Five-Year Plan"

Liu Yaqing, vice president and secretary-general of China Dairy Association, stated that China has made remarkable performance during the “13th Five-Year” development period. The annual milk yield amounted to 34.4 million tons, representing almost 5% of the global output. The revenue of dairy enterprises above the national scale reached 419.6 billion RMB, which boasted higher growth rate than food industry average level. In addition, the market share of domestic infant formula exceeded 60%, and multiple dairy products won awards in international quality appraisal or were certified by international authoritative agencies.

Strategies of "14th Five-Year Plan"

Despite of those achievements obtained, Liu Yaqing also pointed out series of problems that China is confronted with, including weak industrial competitiveness, unbalanced product supply and demand structure, and insufficient consumption cultivation. To deal with these issues, following five development strategies and three directions will be the key points of the “14th Five-Year Plan”.

Five development strategies

• Implement new development concept and formulate new strategies

China should further utilize the local forage and fodder resources, and establish a planting and breeding mechanism combining intensification, standardization, systematism and socialization.

• Develop new advantages driven by innovation

State-of-the-art technologies such as big data, cloud computing, artificial intelligence, biotechnology, cold sterilization technology could be used for dairy innovation so as to improve the overall competitiveness.

• Consolidate the establishment of dairy modernization

Modern mechanism involving dairy production, operation, supply chain, quality supervision, and supportive protection (e.g. implement dairy supportive policy) should be set up.

• Optimize the industrial structure

Apart from UHT milk, China will greatly develop dairy products boasting local advantages such as pasteurized milk and fermented milk, as well as products having high additional value like cheese.

• Continue opening-up policy

Domestic supply will account for the majority while imported product is also a significant supplement of the overall dairy supply in China.

Three directions

• Establish modern industry system

China aims to set up modern infrastructure system which is well-equipped, efficient, intelligent, environmentally-friendly and safe. Scientific and technological innovation is also emphasized.

• Adhere to “dual circulation” paradigm

China will fully utilize “the Belt and Road Initiative”, “free trade agreement” and CIIE to introduce premium dairy products to China as well as facilitate the exportation to overseas.

• Satisfy the consumers’ demand of high-quality life

China will enhance the dairy consumption level by intensifying the consumption cultivation, and promote the development of pasteurized milk, cheese, butter, mill powder and whey powder so as to satisfy the consumption demand.