China Unveils Plan to Reshape #Milk-Powder Industry

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China’s State Council on Friday unveiled a blueprint to push consolidation of the country’s baby-formula milk-powder industry, trying to reshape a sector that has been mired in food-safety scandals.

The industry remains fragmented and consumers still lack confidence in domestic brand names, the State Council, or cabinet, said in a statement on the central government website.

The government aims at forming about 10 large milk-powder groups with annual revenue of more than two billion yuan ($323 million) each by the end of next year, the statement said.

By the end of 2018, the industry would have three to five large milk-powder groups with annual revenue of more than five billion yuan each.

The statement didn’t mention which companies would be affected by the plan but said the government would give «appropriate» fiscal support to those companies that succeed in merging and restructuring.

It would also channel more credits to support the restructuring of the industry.

The blueprint came after China’s food-safety regulators late last month pulled production permits from more than one-third of the country’s infant-formula makers, pushing for consolidation and greater control.

China continues to be a price-taker in the global baby-milk market, despite a market that is poised for further growth as Beijing relaxes its one-child policy. As public trust in domestic producers plunged after the 2008 scandal, Chinese families looked abroad for infant milk powder.

Source: WSJ

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Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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