In February, the provinces were busy with the implementation of the “Implementation Plan for Subsidizing the Purchase of Agricultural Machinery in 2009”, which was jointly formulated and released by the Ministry of Agriculture and the Ministry of Finance on December 26th, 2008. Due to the impact form the melamine incident, raw milk purchase price in some main milk supply regions touched the bottom, while cattle sale and milk dumping remained serious. Milk supply regions in the country have stepped up the process of scale production, concentration, and industrialization of the dairy industry.

List

BOABC VIEW POINTS 3

SECTION I. PRODUCTION of MILK and DAIRY PRODUCTS 4

1.1 Raw Milk Production 4

Focus of the Current Issue 4

Inner Mongolia 4

Hebei 4

Ningxia 5

Shandong 5

Xinjiang 6

Guizhou 6

Sichuan 6

Hubei 7

Chongqing 7

Shanghai 7

Raw Milk Price in Main Milk Supply Regions in China 7

SECTION II. DAIRY TRADE 9

2.1 Import Trade 9

2.1.1 Analysis of the Overall Import Trade 9

2.1.2 Import Analysis of Main Dairy Products 10

2.1.3 Price of Main Import Categories 11

2.2 Export Trade 13

2.2.1 Fresh Milk Export 13

2.2.2 Milk Powder Export 15

SECTION III. MARKET TRENDS OF DAIRY PRODUCTS 16

3.1 Retail Price of Fresh Milk 16

3.2 Price of Bulk Packaging Milk Powder 17

SECTION IV. TREND OF DAIRY ENTERPRISES AND INDUSTRIAL INTEGRATION 18

4.1 Yili 18

4.2 Mengniu 18

4.3 Bright 19

4.4 Sanlu 19

4.5 Taizinai 19

4.6 Sanyuan 19

4.7 New Hope Dairy 19

4.8 Chenguang 20

4.9 Hongxing Dairy 20

4.10 Hongguo Dairy 20

4.11 Danone 20

4.12 Dumex 21

4.13 Wyeth 21

4.14 Mead Johnson 21

4.15 Weiquan 21

4.16 President 22

SECTION V. NEW PROJECTS OF THE MONTH 22

Anhui: Modern Farm Project by Mengniu Ma’anshan Modern Dairy Group Co., Ltd. 22

Henan: 10,000-Cattle Dairy Farming Project by Hongyuan Co. Launched 22

SECTION VI. RELEVANT POLICIES 22

ABOUT BOABC 24