subject: Outlook: Focus On Enhancing The Profitability Of Dairy Enterprises [print this page] Cinda Securities R & D Center Food Agriculture analyst Kang Jingdong
The first quarter of this year, China Dairy products Industry production and marketing situation continued to improve. Statistics show this year, 1 to 2 months, the national dairy production of 3030 thousand tons, up 7.8%, of which 2550 tonnes of liquid dairy products, up 7.1%; which in February 1498 tonnes of dairy production, up 4.4% , 1274 tonnes of liquid dairy products, up 4.3%. 1 to 2 months, the country produced 480 tonnes of solid dairy products. Dairy industry output growth due to consumer Dairy The recovery of consumer confidence, as well as New Year's Day and Spring Festival and other festivals of factors driving consumer demand. At the same time, this also shows that dairy industry to continue the momentum of development last year, running relatively smoothly.
From the enterprise's profit-earning capability, the first two months of this year, accumulated income of the dairy industry and cumulative total profits grew 18.63 percent year on year and 8.99%, dairy industry Sell Margin of 5.32%, balance was 55.10%. This indicates that, despite the dairy industry is to achieve rapid recovery of growth, but affected by many factors, the current corporate profits are still limited.
Import and export, according to customs statistics, total imports of dairy products, the first two months of this year 121,582 tons, up 40.78 percent. However, the import prices of dairy products in general as a significant rise in full-fat sweet Milk powder , Yoghurt type products, and imports of whey has been decreased. From the export side, China's exports of dairy products remained low hover. At present the domestic market demand for dairy products is still very strong, our production of basic dairy products now can be achieved in the country to digest dairy enterprise exports relative shortage of power.
In Raw material Milk, the Ministry of Agriculture, Animal Husbandry and 470 fairs across the country livestock and feed prices sentinel surveillance results show that by 2010, three months, the country of 10 milk-producing provinces of raw milk prices rose slightly and gradually stabilized. As of March 10, weekly average price of roughly 2.72 yuan / kg, up 5.28% over the same period, compared with 2009, prices rose 17.38 percent minimum.
The moment, dairy farming costs to rise sharply, Milk Production demand, the import prices of raw materials grandmother powder milk leading to rising prices of raw materials the main reason.
First cow corn is currently the main feed, 2010, three months, compared with a year earlier, the average corn prices rose as high as 23%, significantly higher than the same period the level of raw milk.
Secondly, the supply of our raw milk dairy products and the current mismatch between the productive capacity of enterprises, there are some raw milk supply gap.
Again, most recently, the main raw material base of domestic milk powder to high level. The price per ton of milk-based powder, compared with last year's third quarter, an increase of 6,000 yuan.
In addition, other factors, production costs are also increasing.
Overall, a quarter of dairy industry profit growth exceeded expectations, but the overall profitability of the industry is still very strong. The second quarter, the peak of dairy consumption, especially consumption of beverage products usher in season, which for the industry is a very favorable market opportunities.
Dairy companies should actively market demand continues to strive to expand market space; do everything possible to reduce production costs and marketing costs, to digest raw material prices brought pressure Prices Pressure; speed up the product structure adjustment, diversification of product mix, improve product quality; speed up the milk source base, so that milk production base to match the size and business to further consolidate the basis for enterprise development; further improve the enterprise management mechanism and production processes to improve corporate profitability and market risks to cope.
Outlook: Focus On Enhancing The Profitability Of Dairy Enterprises
