According to statistics from China's Customs Office, for the first two months 2008, China's dairy import (duty codes: 0401, 0402, 0403, 0404, 0405, 0406) totaled 63.85,000 tons, up 27.07% than the same period last year. Of which, import in February was 27.41,000 tons, a year-on-year growth of 32.48%. BOABC believes that the rally of dairy import in the first two months of 2008 is mainly attributable to the high raw milk price in China, which raised milk powder price; on the other hand, it can be attributable to the downfall of the import prices of milk powder and whey products.

List


BOABC View Points 3

SECTION I. PRODUCTION of MILK and DAIRY PRODUCTS 3

1.1 Raw Milk Production 3

Highlights of Current Issue 3

Heilongjiang 4

Hebei 4

Liaoning 4

Jiangsu 4

Zhejiang 4

Raw Milk Price 5

1.2 Dairy Products Production 6

Liquid Milk 6

Solid Milk 7

SECTION II. Dairy Trade 7

2.1 Import Trade 7

2.1.1 Analysis of the Overall Import Trade 7

2.1.2 Import of Main Dairy Products 8

2.1.3 Price Analysis of Main Import Items 10

2.2 Export Trade 11

Milk Powder 11

Fresh Milk 13

SECTION III. Market Trends of Dairy Products 14

3.1 Fresh Milk Retail Price 14

3.2 Market Trend of Whey Powder 16

3.3 Market Trends of Milk Powder 18

3.4 Lactose Market Trend 18

3.5 Butter Market Trends 18

SECTION IV. Dairy Enterprises and Trend of Industrial Integration 19

4.1 Yili 19

4.2 Mengniu 19

4.3 Bright 19

4.4 New Hope Dairy 20

4.5 Changfu Dairy 20

4.6 Taizi Milk 20

4.7 Feihe Dairy 20

4.8 Nestle 21

4.9 Wyeth 21

4.10 Abbott 22

4.11 Mead Johnson 22

SECTION V. New Technologies and New Products 22

Sanlu Group Promotes its ¡°Colostrum¡± Products. 22

Mengniu Launched the First Children¡¯s Milk in China 22

Wyeth to Have Renovated Special Liquid Formula Milk 23

SECTION VI. New Projects of the Month 23

Shaanxi: Shaanxi Sanlu Dairy Co., Ltd Jingyang Yogurt Project Completed 23

Guangdong: New Nestle Ice-cream Factory in Guangzhou Economic and Technological Zone Began its Production. 23

SECTION VII. Policy Trend 24

NDRC Formally Promulgate ¡°Market Entry Conditions for Dairy Industry¡± 24

Ten Initiatives by the State Council for the Promotion of Agricultural and Grain Production 25

ABOUT BOABC 27