Dairy Industry Melee Terminal &Nbsp; High-End Products Or Bright Marketing Breakthrough.

Reform of policy and market warming

"The dairy industry's vigorous consolidation has released some production capacity and market space for the industry, and many enterprises have also taken the opportunity to expand by means of mergers, upstream and so on.

The bright marketing strategy has always been moderate, stable, and not sharp enough. It is right to expand production capacity at this time, but the future development depends on the strategic positioning of its high-end products.

Wang Chuancai, chief consultant of Huawen Huatong consulting company, analyzed the interview with the Securities Daily reporter.

High-end products or products

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Public information shows that the milk factory of Guangming intended to build an area of 232 mu, with a floor area of 125 thousand square meters, will reach 2000 tons (annual output of 600 thousand tons) per day after commissioning. The main products of the factory are Guangming brand fresh milk, yogurt and normal temperature milk, of which the yogurt production capacity is expected to reach an annual output of 300 thousand tons.

The annual sales income was 4 billion 648 million yuan after the completion of the work.

The project is expected to be completed and put into operation in 2013.

It is worth noting that the reason why Guangming has invested in new factories is that the expansion of production capacity is limited. The company's current liquid milk production base in Shanghai is dispersed, and further intensification and large-scale operation will help reduce costs and increase efficiency.

In 2011, the management strategy of Guangming dairy industry has been adjusted from "focusing on dairy industry, making fresh and strong, breaking through the normal temperature and realizing billions" to "focus on dairy industry, lead fresh, make stronger room temperature, break through milk powder", seek to maintain the leading position of domestic milk, at the same time, make strong room temperature milk and make breakthroughs in superior quality milk powder, while the newly built east China Central factory's normal temperature milk will be able to cover the whole country.

"Mengniu and Erie's marketing strategy takes into account two or three lines of cities and villages, so they have absolute advantages in conventional products, and if they want to compete with these two companies in such operations, the cost will be greater, but the bright advantage is that high-end products are doing well."

Wang Chuancai said.

Wang Chuancai said that from the perspective of all the bright products at present, if we want to be able to advance further in the future market, we must have a comprehensive developer's product. "At present, China's dairy consumption level is low, but the bright development advantage over the years is high-end users.

Pasteurized milk, lactobacillus beverage, cheese and other dairy products and beverage products have four bright prospects for development.

"Dairy giant products have many kinds of products, and all kinds of high-end products are available. Low end conventional products do not need to be profitable. As long as they are flat, they are mainly to seize the market, and high-end products are the main products of profit, which will make up the difference."

One industry insider said.

Upstream and downstream investment is hot and cold

Public information shows that whether or not the Yili shares announced the investment in the establishment of 800 tons of UHT milk project or Mengniu early investment in Qingyuan factory, the three giants in the business expansion will invariably focus on the product.

"In a few big milk enterprises, the brighter upstream is the best control."

A securities analyst said.

In China, due to geographical factors, milk sources are mostly concentrated in Ningxia, Inner Mongolia, Xinjiang and other places, while Ningxia is in the best breeding zone of international dairy cattle. "Competition for milk sources is more prominent. Taiwan's Wangwang, Wahaha, Mengniu, Yili and other large enterprises have been stationed in succession. This is also confirmed. When they came in, they did not build milk source base, just built factories. In order to digest and absorb high-quality milk from Ningxia, their arrival would affect the development of local milk industry."

A senior dairy worker in Ningxia told reporters.

This person said that the presence of these large enterprises has promoted the management and market operation consciousness to a certain extent. However, if they do not build a milk source base, they are bound to fight for the local milk sources, which may cause milk sources to scramble for homes, which is unfavorable to the safety of milk sources. In addition, local milk sources are limited, while dairy farming needs time, and milk volume can not meet the needs of so many large enterprises at once. Besides, large enterprises only accept fresh milk from farms and pastures. The dairy farmers scattered here can not disappear instantaneously, and they will enter the park, and there will be a crisis for dairy farmers.

The contradiction between excessive investment and rapid expansion of aquaculture has always been an important factor restricting the development of dairy enterprises. "One of the more encouraging signs this year is that enterprises are busy building a milk source base for stabilizing milk sources, which is relatively large investment in the past, and is also reluctant to invest heavily in the past. However, in order to ensure the safety and quality of milk, and to exclude itself from large enterprises, we have to do this."

These people said.

Industry expansion is false?

As the giants frequently invest heavily in the industry, there are people in the industry who think that under this industry hint, it may lead to a trend of expansion, and most of the reporters call the analysts and insiders.

"A dairy company appears to be expanding. I wonder how many of the poor factories are abandoned, and then hunt for new targets. It is not necessarily the expansion of the whole country as a whole."

A senior dairy worker in Ningxia told reporters.

Coincidentally, a securities analyst who has been observing dairy industry for a long time also agrees with this view: "from the current appearance, there is a tendency to expand production capacity or merger, and the concentration level of the top five and the top ten will increase.

A comprehensive analysis shows that the speed of industry expansion is not as fast as that of investment growth.