dairy products

China dairy products market has developed into a modern food manufacturing industry with advanced techniques and complete varieties in the past ten years. The total output of milk was 28.648 million tons in 2005, up by 20％ over last year, which is 3.3 times than that of 1995. The total industry value of dairy product alone reached RMB 88.67 billion. With the improving living conditions of Chinese people, dairy consumption market is now getting expanded and matured gradually. China will become the most potential market of dairy products in the world. The annual world dairy products consumption per capita is 100 kg, which is far beyond that of China. Great potential can be seen in China dairy products market. With the constantly improved living conditions, it is forecasted that in the next five years such consumption will increase a lot, especially the liquid milk perhaps with an annual growth of 15％. Currently, China dairy products consumption per capita is still at a low level with huge potential. Meanwhile, consumption of cheese, cream, blue cheese and butter takes a relatively large part in the total dairy product consumption, while only single variety of dairy products like liquid milk, yoghourt and powder milk are popular in China, which leads to fierce competition in liquid milk and milk powder markets, surging up a constant price war among enterprises.