On
November 19, Yuan Sheng Tai Dairy Farming Join Stock Co., Ltd. announced that
its subsidiary, Shaanxi Ruixiang Chengda Animal Husbandry Co., Ltd., intends to
purchase Shaanxi Lüneng Ecological Animal Husbandry Co., Ltd.'s milk goat
breeding facilities, goat milk production lines, and land use rights for
several breeding farms at a price of RMB 131 million.
According
to the information quoted by Yuan Sheng Tai, in 2019, Shaanxi Lüneng had about
2.4 million dairy goats, 700,000 tons of goat milk, 129,000 tons of related
goat milk products, and an output value of about RMB 28.5 billion in the goat
milk industry chain. In 2020, the
market size of goat milk powder for infant formula will exceed RMB 10 billion,
and it is expected that the market size will reach RMB 20 to 30 billion within
3 to 5 years.
Yuan
Sheng Tai’s parent company Feihe with eyes on goat milk market
Yuan
Sheng Tai believes that China's goat milk market has a huge potential, and it
is interested in the high-quality milk goats and breeding facilities of the
seller, Shaanxi Lüneng. The acquisition
will enable Yuan Sheng Tai to further expand its business in the fast-growing
goat milk market and enrich and expand new product series to meet customer
needs.
As the controlling shareholder of Yuan Sheng Tai, with a
shareholding ratio of 100%, China Feihe completed the transfer of the
controlling rights of the infant goat milk powder company Shaanxi Xiaoyang Milk
Dairy Co., Ltd. in July this year. This is the first time that Feihe has
rejoined the goat milk powder market in seven years. The company will make
sweeping changes in management in order to emulate Feihe's entire industrial
chain model in milk powder.
New regulations arise in China’s
growing goat milk market
In order to further regulate the labeling
of infant milk powder formula products, force enterprises to carry out their
responsibilities, and safeguard the legitimate rights and interests of
consumers, China’s Administration of Market Supervision issued an “Announcement
on the Further Standardization of the Labeling and Marking of Infant Milk
Powder Products" on November 12.
The announcement requires that if an
animal appears in a product’s name, then all milk protein sources such as raw
milk, milk powder, and whey powder that are used in the product should come
from that species. If a milk protein raw material has two or more animal
origins, the proportion of each animal’s raw materials shall be indicated in
the ingredient list.
This regulation is mainly aimed at the
mixed goat milk formula for infants and young children currently on the market.
Zhu Danpeng, a Chinese food analyst, says that the goat milk powder industry is
still in the early stages of development, and there are many instances in the
industry in which goat milk powder is added with cow whey and sold as pure goat
milk powder.
The new regulations imply that goat milk
powder mixed with cow whey will no longer be simply labeled as goat milk
powder. Rather, this type of goat milk powder must indicate the proportion of
goat milk and other animal raw materials in its ingredient list.
For more information, please check our Dairy Products China News.
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