Pacific Coast Dairy Management Inc

"Building Bridges, Exploring Business Opportunities for Hawaii and United States Businesses through Experiences and Hand on approaches - We Get Things Done with Tangible and Measurable Results"    "Hawaii-China Guan Xi, We Get Things Done™" 

Hawaii's China Connection Video

Officers

Johnson W. K. Choi, MBA, RFC., President 

Robert M Nakamura D.V.M., Senior Vice President

David Z Mao, Esq., Vice President 

Michael Duponte., Senior Consultant

Current Projects - Internal use only

Meeting with Director of Shanghai CIQ Dr. Yu-Ping He; Consul for Agricultural Affairs of the American Consulate General - Ross G Kreamer, Xu Min - Marketing Specialist and Leanne Wang - Agricultural Marketing Assistant on how to work with the "new" Product Labeling Law of the People Republic of China

Brand Building in China - What Work in China?

Johnson Choi, Executive VP and CFO of CMC Consulting Group Inc (Hawaiian Host Chocolates China Consultant) and a Participant of the June 2005 Business/Trade Mission representing the University of Hawaii, School of Travel Industry Management and the Hong Kong.China.Hawaii Chamber of Commerce received an award from Governor Linda Lingle on behalf of the Hawaiian Host Chocolates

Issues

October 29 2012

15億補貼外企在華建大奶場 中國促乳業轉型 星島日報

全球最大的食品生產商雀巢（Nestle）將率先開設其在中國的第一家奶業研究院，並將在研究院旁邊建一座可容納1000頭奶牛的奶場。中國乳業正努力實現從小農戶養殖向大規模奶場模式的轉變，中國政府在游說海外私營企業入場，雀巢的計劃是這種努力的一部分。

包括新西蘭恒天然（Fonterra）和丹麥阿爾拉（Arla）在內的其他海外公司也紛紛入場，幫助重組中國的奶業——它們大多享受了一些優惠政策。中國奶業協會（China Dairy Association）稱，中央政府自2005年來已發放15億元人民幣的補貼，2012年還將發放2.6億元。

英國《金融時報》報道，2008年三聚氰胺奶粉事件爆發，引發奶粉行業重新整合。事件爆發前，中國有80%的牛奶產自小型奶場，只有7%的生奶產自能容納超過1000頭奶牛的大型奶場，而這一比例在美國為近50%。

但中國政府推動奶業結構轉型的努力，不只是為了應對三聚氰胺奶粉事件。這些努力也是為了應對一股正在困擾各政府和食品生產商的全球趨勢：人口越來越多，而土地面積沒有增加。如何在保障食品質量和食品安全的前提下，用同樣面積的土地供越來越多張嘴吃飯，這是擺在全世界面前的一道難題。

雀巢新興市場主管南基紹爾（Nandu Nandkishore）說：「我們面臨的特殊挑戰是，去哪裏找牛奶、可可豆等原料。這對我們的經營來說是個非常現實的挑戰，因為如果沒有優質的原料，我們做不成生意。」

雀巢已經找到了一種解決方案：設立許多「中心」奶站，只有幾頭奶牛的小奶農可以把牛奶送到奶站，由奶站進行質量初檢，初檢合格後，再進行一道檢驗，然後送至雀巢的工廠。

隨著中國政府開始推動奶製品生產商轉向大型奶場收奶，雀巢的這種體系如今正在發生改變。與中國本土奶業同行蒙牛和伊利一樣，雀巢和新西蘭恒天然都開始轉向大型奶場收奶。但小型奶場不會被遺忘：雀巢將建起一些公共奶牛棚，將分屬不同奶農的小群奶牛集中到一起。

儘管計劃的設想合乎邏輯，但誰也不敢對其規模抱有絲毫幻想。缺乏培訓便是一個問題，也正因如此，雀巢才決定與一家美國大學合作建立奶業研究院。研究院將於2013年4月正式成立。

不是所有人都相信這樣做就夠了。國際奶業顧問福爾貝根（Mark Voorbergen）就持懷疑態度。他說，中國是世界上最大的牛奶進口國，年進口量逾500萬噸，而在將「後院小農場」式奶農轉變為專業牛奶生產者方面，中國還面臨巨大挑戰。福爾貝根說：「中國與亞洲大部分地區一樣，都不是擅長生產牛奶的地方。」他還說，牛奶「以前在飲食結構中所佔比重不大，因此沒有多少人養牛擠奶，更別說以牛奶為主要的收入來源了」。

福爾貝根還提到了奶業飼料供應不足的問題。隨著中國中產階級的生活水平繼續提高，他們的飲食結構也在改變，這意味著豬肉和雞肉的食用量在上升，令所有畜牧業主都面臨飼料供應壓力。

1.5 billion the subsidies foreign companies in China built the large dairies China promote dairy transformation - By Singtao Newspaper

(translation using Google Translate from the above Chinese article)

The world's largest food manufacturer Nestle (Nestle) will be the first to open its first Dairy Research Institute, and will be built at the Institute next to a capacity of 1000 cows Dairies. Chinese dairy industry is trying to achieve from small the aquaculture farmers shift to large-scale dairies mode, the Chinese government in the lobby Admission overseas private sector, the the Nestlé plan is part of this effort.

Other overseas companies, including New Zealand's Fonterra (Fonterra) and Denmark Arla (Arla) have also Admission - most of them enjoy some preferential policies to help the restructuring of China's dairy industry. Dairy Association of China (China Dairy Association), said the central government since 2005, has issued 1.5 billion yuan of subsidies will be paid 260 million yuan in 2012.

 British "Financial Times" reported that the outbreak of the melamine milk powder incident in 2008, caused by the milk industry, re-integration. Before the outbreak of the incident, China has 80% of the milk produced in small dairies, only 7% of the raw milk produced in large dairies can accommodate over 1000 cows, while the proportion in the United States for nearly 50%.

But the Chinese government to promote the the dairy restructuring efforts, not just in response to the melamine milk powder incident. These efforts are also in order to cope with the surge of global trends are troubled by the government and food manufacturers: population more and more, but did not increase the land area. Under the premise of protecting food quality and food safety, with the same area of ​​land for more and more mouth to eat, which is placed in front of the world, a problem.

Nestle emerging market the competent Nanjishaoer (Nandu Nandkishore) said: "We face special challenges, where to find milk, cocoa and other raw materials. This is a very real challenge for our business, because if there is no quality raw materials, we do business. "

Nestle has found a solution: the establishment of many of the "center" milk stations, small dairy farmers may be only a few cows the milk to the milk station, stop by the milk quality initial inspection, after passing the initial inspection, a test and then sent to the Nestle factory.

With the Chinese government began to promote dairy producers to switch to large dairies milk collection, of Nestle of this system is now being change. With local dairy counterparts in China Mengniu and Yili, Nestle and New Zealand Fonterra are beginning to turn to large dairies and milk collection. Small dairies will not be forgotten: Nestle will set up some public cows shed, will belong to the small group of cows of different dairy farmers concentrated together.

Although the idea of ​​the plan is logical, but who did not dare to have any illusions about its scale. Lack of training is a problem, because of this, Nestle decided to establish Dairy Research Institute in collaboration with an American university. Research Institute will be formally established in April 2013.

Not everyone believes doing enough. The International Dairy consultant Fuer Bei root (Mark Voorbergen) skeptical. He said, China is the world's largest milk imports, imports more than 500 million tons, while in the "backyard farms" type of dairy farmers into professional milk producers, China also faces enormous challenges. "Fuer Bei, said:" China and much of Asia, are not good at the place of production of milk, "he added, milk little diet proportion, so not many people raise cattle milking, let alone to milk as the main source of income. "

Fu Erbei root also mentioned the problem of inadequate supply of dairy feed. With China's middle-class living standards continue to improve their diet has changed as well, which means that the consumption of pork and chicken in rising all livestock owners are faced with the pressure of the feed supply.

April 22 2011

The Day the Milk Stopped Flowing By Xinzhen Lan

Government crackdowns may put the dairy industry back on the right track, but more action will be necessary to ensure dairy safety 

LOOKING FOR SAFE MILK: A shopper chooses infant formula milk powder in Lianyungang, east China's Jiangsu Province. Consumers are shunning domestic milk producers because of recent scandals

Dairy producers won't be the only companies to feel the heat of the recent crackdowns—dairy retailers will also be slapped with penalties if they fail to meet new requirements. Starting in April, dairy retailers will be required to apply for one of two licenses: one will allow them to sell dairy products that contain baby formula and the other will allow them to sell formula-free dairy products, said the SAIC.

The enterprises engaged in dairy distribution should apply for relevant food distribution licenses starting April 1 this year. The SAIC said that starting from August 1 this year, any enterprise not possessing a proper license will be banned from future distribution business with an investigation and penalties to follow.

SAIC also ordered the administrative departments for industry and commerce at all levels to enhance supervision and inspection on the dairy market. The local level departments should conduct routine inspections on dairy facilities and perfect the database for dairy producer credit information.

A quality tracking system is also in the works. By this June, the system will be up and running to verify the validity of production and distribution licenses.

Challenges

A recent Bank of China International Ltd. report said the new measures, aside from positively affecting the dairy industry, will promote the healthy and orderly development for all dairy producers by reducing the probability of future scandals. Over time, consumer confidence could be restored.

With a large number of dairy producers being shut down, cut-throat competition in the industry will be alleviated, which will help cut costs and increase capacity utilization for dairy producers, said the Bank of China report.

Concerning foreign dairy competitors, domestic milk producers may be on an even footing with foreign ones, but when it comes to high-end imported infant formula, domestic makers are far behind. Rising consumer confidence in China's own baby milk formula will benefit middle- and low-end milk powder producers, said the report.

Chen Lianfang, a dairy analyst at Beijing Orient Agribusiness Consultants, said this will surely have an influence on the dairy industry in that some small dairy producers will be driven out of the market. Those dairy producers that will disappear from the market will leave a market share of 20 percent.

But Chen does not think the inspections alone will guarantee a safer dairy industry.

"For those 643 that have passed the inspection and obtained the new production license, it is more of an approval and appraisal of their hardware equipment than company leadership," Chen said. "Food safety should be decided more by company leaders and the workers. Their sense of social responsibility is more important than the machinery in their production lines."

Food Safety 2011

China rolled out its annual working plan to beef up food safety in 2011 on March 25. It will specifically target dairy products, edible oils, meat, food additives and alcohol in its food safety campaign this year. The plan stressed ensuring food safety in those key categories by raising the benchmark for market entry, gradually phasing out unqualified producers and introducing an information-based tracking mechanism and credit system in those industries.

Record Milk Powder Import

According to China Customs statistics, in the first 11 months of 2010, the value of China's dairy imports reached $1.77 billion, 95.13 percent higher year on year. Imports accounted for 97.79 percent of the total foreign trade of dairy products.

During this period, the country's dairy imports hit 668,279.79 tons, increasing 24.34 percent and accounting for 95.59 percent of the total foreign trade of dairy products.

DAIRY TYCOON: A worker inspects products at Inner Mongolia Yili Industrial Group Co. Ltd., one of China's top dairy producers. Recent supervision will help eliminate small unqualified dairy producers and help stronger ones take up larger shares of the market 

Nearly half of China's dairy enterprises will be forced to suspend operations or close their facilities following a watchdog inspection that found many dairy producers have been operating below quality safety standards.

Only 643 dairy producers, 55 percent of China's 1,176 nationally registered dairy companies, passed a recent inspection of the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) and the State Administration of Industry and Commerce (SAIC), said Li Yuanping, spokesman for AQSIQ. A total of 426 dairy producers will be closed indefinitely; another 107 will be suspended until they comply with the AQSIQ's standards.

The inspection was conducted in response to increasing concerns over dairy food scandals in recent years. The scandals have resulted in a consumer backlash, as many turn away from domestic producers and seek out foreign alternative dairy brands.

Scandals

The recent wave of dairy scandals started in 2008 when adulterated milk powder produced by Hebei-based Shijiazhuang Dairy Co. killed six infants and caused more than 12,000 other infants to be hospitalized. The milk powder was tainted with melamine that caused kidney stones and other complications. Several of the company's top managers were sentenced to hefty prison terms and the company was ultimately dissolved following the public's outcry.

The following year, Chenyuan Dairy Co. in east China's Zhejiang Province was closed after leather protein was found in its products. Leather milk, using leather and hair as the main source of protein, can result in heavy metal poisoning. Authorities wouldn't comment if anyone was sickened in that case.

Distrust for mainland dairy products has caused a surge of mainlanders to flock to Hong Kong and Macao to scoop up infant formula, causing a shortage in the two special administrative regions.

Corrections

The AQSIQ issued orders in November 2010, requiring all dairy companies to reapply for production licenses by the end of last March or face penalties. To obtain the licenses the companies first had to pass the AQSIQ's inspection parameters. The AQSIQ sent 25 teams to supervise the quality testing.

Li said quality supervision departments have already cancelled production licenses to those producers who failed the inspections. Supervision over dairy producers will be handed over to local quality supervision departments following the inspections.

For local level supervisors, the AQSIQ demanded that subordinate quality supervision departments strengthen supervision over dairy makers who have passed the test to ensure they continue to follow guidelines. The quality supervision departments must also strengthen their law enforcement to crack down on unlicensed production.

Contact us:

Corner Bishop and South Beretania Street  

Business Hours: 8:30am - 4:00pm (M - F) Advance Appointment Requested
USA Address: 1188 Bishop Street, Century Square, Suite 3403, Honolulu, Hawaii 96813, USA
Hong Kong SAR Address: 253 Des Voeux Rd #1305, Central, Hong Kong
China Address: 31-35 Yongjia Rd, #520, Shanghai 200030, China
San Francisco USA Phone: (415) 691-6138;
Hawaii USA Phone: (808) 524-5738;
Hong Kong SAR Phone: (852) 8171-3118 & (852) 9239-3999 (mobile)
USA Toll Free Fax: (877) 852-8548
emails: jwkc8168@yahoo.com and johnsonwkchoi@yahoo.com  johnsonchoi@johnsonchoi.com or cmcconsultinginc@yahoo.com

Last update May 7 2011