Next stop China

摘要

China has had its fair share of negative publicity over its dairy industry, but analysts are positive about its long-term eminence in the sector. "We will see more concentration in the Chinese dairy market in the next few years, as larger dairies work to exert more control over their subsidiaries, and to compete effectively against the multi-nationals," Richard Field, director of Orrani Consulting in the UK says. "This is also because the central government wants it to happen. If the Chinese government wants something to happen, it usually does." To combat the negative impacts of the melamine scandals, the Chinese government has introduced a raft of new legislation, designed to instill quality control into the dairy industry and upping the requirements for dairy manufacturers. "The new licensing requirement that was installed in the fourth quarter of 2010 is having an impact this year. It's essentially pushed a lot of smaller processors out of the market and a lot of them are disappearing," he notes. "It's quite a slow process, but the government is utterly committed to it. The Chinese government wants to sort the situation out, as it is in the country's best interests to do so."