White revolution in red land: China No. 3 in dairy

China has grown leaps and bounds in the dairy sector. In its latest achievement, China has overtaken Russia and Pakistan to become the third largest producer of dairy products in the world after India and the US.

The 'White Revolution' in 'Red land' saw China's production growing by 15 per cent to reach 32.9 million tonnes in 2006.

Liu Chengguo, director of the Dairy Association of China, attributed the rapid development of the country's dairy sector to a fast growth in the sector's processing capacities.

Both industrial output and sales revenue of major dairy processing companies in 2006 were seven times the 1998 figures, standing at 107.4 billion yuan ($14.1 billion) and 104.1

billion yuan respectively.

Data shows that the number of major dairy manufacturing enterprises, namely state-owned enterprises and those with an annual sales revenue of above five million yuan, has doubled over the last seven years to reach 698 in 2005, and 14 of them boast of a daily processing capacity of more than 1,000 tonne.

There was also a significant rise in the consumption of dairy products in recent years as the consumer market expanded from large and medium-sized cities to towns and villages. The average consumption of dairy products by Chinese residents in 2006 was the equivalent to 25.6 kg, up 76.6 per cent in 2000.