It was an interesting trend Chalmers learned about on a trade mission in April to China. The trade mission was coordinated by Wisconsin’s agriculture department to promote Wisconsin agricultural products and trade.
Chalmers and other trade-mission participants met with Chinese government officials, who were keen on learning more about Wisconsin’s value-added dairy products and the state’s dairy industry and suppliers. China has set a goal to double milk production by 2020; the government is encouraging joint ventures and investments. This offers trade opportunities for Wisconsin companies, Chalmers said.
“Dairy has become a trendy food,” Chalmers said. “It reflects the changing nature of the consuming public that is becoming more interested in Western culture. Chinese consumers now have more discretionary income and are willing to pay more for high-quality nutritious food.”
Chinese business people posed a number of questions.
“They wanted to know how to make cheese quickly,” Chalmers said. “The potential for education and consulting is unlimited.”
As further evidence of China’s interest in cheese, a Guinness World Record-breaking “Largest Display of Cheese Varieties” was held at April’s China International Dairy Expo and Summit in Harbin. More than 500 varieties of cheese were displayed, 417 of which were contributed by 24 Wisconsin cheese producers and distributors. The event generated a lot of coverage by China’s media outlets.
According to an August 2015 report by Euromonitor International, cheese sold in China is expected to increase in value at an annual rate of 19 percent, due mainly to growing consumer awareness. China has huge growth potential for sales of cheese; per capita consumption has traditionally been relatively low. Euromonitor added that yogurt and sour milk products are expected to increase in value at an annual rate of 14 percent. Even though dairy products are not part of the traditional Chinese diet, they are viewed as an important part of a growing child’s diet.
Food scandals and ongoing consumer mistrust of China’s domestic dairy products have resulted in increased demand for imports, which are viewed as safer and of higher quality, according to a 2014 report by Ecovis. Ecovis is a global consulting firm providing services in the fields of international transactions and investments. In 2008, milk and infant formula produced in China were found adulterated with melamine, which sickened tens of thousands of children. As a result, Chinese officials want to improve food safety.
In June, Sundaram Gunasekaran, faculty director of the College of Agricultural and Life Sciences international programs at the University of Wisconsin-Madison, will travel to the Nestle Dairy Farming Institute in Heilongjiang province to discuss possible food-safety education-program collaborations. Gunasekaran is a professor of food engineering in UW-Madison’s department of biological systems engineering with a courtesy appointment in the department of food science. UW-Madison is an academic partner of the Nestle Dairy Farming Institute.
Goal: double milk production by 2020
In 2015, China produced more than 37 million tons of milk, according to the U.S. Department of Agriculture’s Foreign Agricultural Service. The Chinese government wants to double milk production by 2020, in large part due to the country’s rising population and its food-security concerns. That is one of the reasons that Heilongjiang, China’s top milk-producing province, plans to invest $210 million in dairy and livestock expansion during the next three years. Government officials are encouraging joint ventures and foreign investments. Cooperative structures or “dairy villages” are being considered, Chalmers said.
No matter the structure, there will be a number of short- and long-term opportunities for Wisconsin-based companies. The dairy industry in China needs feed, equipment and genetics as well as dairy food-processing equipment, Chalmers said. Wisconsin companies interested in such trade opportunities are encouraged to talk with the international trade team at the Wisconsin Department of Agriculture, Trade and Consumer Protection.
Chalmers and other trade-mission participants met with Chinese government officials, who were keen on learning more about Wisconsin’s value-added dairy products and the state’s dairy industry and suppliers. China has set a goal to double milk production by 2020; the government is encouraging joint ventures and investments. This offers trade opportunities for Wisconsin companies, Chalmers said.
“Dairy has become a trendy food,” Chalmers said. “It reflects the changing nature of the consuming public that is becoming more interested in Western culture. Chinese consumers now have more discretionary income and are willing to pay more for high-quality nutritious food.”
Chinese business people posed a number of questions.
“They wanted to know how to make cheese quickly,” Chalmers said. “The potential for education and consulting is unlimited.”
As further evidence of China’s interest in cheese, a Guinness World Record-breaking “Largest Display of Cheese Varieties” was held at April’s China International Dairy Expo and Summit in Harbin. More than 500 varieties of cheese were displayed, 417 of which were contributed by 24 Wisconsin cheese producers and distributors. The event generated a lot of coverage by China’s media outlets.
According to an August 2015 report by Euromonitor International, cheese sold in China is expected to increase in value at an annual rate of 19 percent, due mainly to growing consumer awareness. China has huge growth potential for sales of cheese; per capita consumption has traditionally been relatively low. Euromonitor added that yogurt and sour milk products are expected to increase in value at an annual rate of 14 percent. Even though dairy products are not part of the traditional Chinese diet, they are viewed as an important part of a growing child’s diet.
Food scandals and ongoing consumer mistrust of China’s domestic dairy products have resulted in increased demand for imports, which are viewed as safer and of higher quality, according to a 2014 report by Ecovis. Ecovis is a global consulting firm providing services in the fields of international transactions and investments. In 2008, milk and infant formula produced in China were found adulterated with melamine, which sickened tens of thousands of children. As a result, Chinese officials want to improve food safety.
In June, Sundaram Gunasekaran, faculty director of the College of Agricultural and Life Sciences international programs at the University of Wisconsin-Madison, will travel to the Nestle Dairy Farming Institute in Heilongjiang province to discuss possible food-safety education-program collaborations. Gunasekaran is a professor of food engineering in UW-Madison’s department of biological systems engineering with a courtesy appointment in the department of food science. UW-Madison is an academic partner of the Nestle Dairy Farming Institute.
Goal: double milk production by 2020
In 2015, China produced more than 37 million tons of milk, according to the U.S. Department of Agriculture’s Foreign Agricultural Service. The Chinese government wants to double milk production by 2020, in large part due to the country’s rising population and its food-security concerns. That is one of the reasons that Heilongjiang, China’s top milk-producing province, plans to invest $210 million in dairy and livestock expansion during the next three years. Government officials are encouraging joint ventures and foreign investments. Cooperative structures or “dairy villages” are being considered, Chalmers said.
No matter the structure, there will be a number of short- and long-term opportunities for Wisconsin-based companies. The dairy industry in China needs feed, equipment and genetics as well as dairy food-processing equipment, Chalmers said. Wisconsin companies interested in such trade opportunities are encouraged to talk with the international trade team at the Wisconsin Department of Agriculture, Trade and Consumer Protection.
Source: Agriview