China Government issued Food and Nutrition Development for 2014-2020
The China Food and Nutrition Development Plan for 2014-2020, issued on Monday by the State Council, aims to raise average milk consumption to about 100 millilitres a day by 2020, up from the 15ml per day under the 2000-2010 plan.
The other specific food named for development was soya bean, the cultivation of which in the major production region of Heilongjiang fell by half in the past nine years. China, once self-sufficient in soya bean cultivation, is the world's largest importer.
He Jiguo, dean of the nutrition and food safety department at China Agricultural University, said the plan's emphasis on dairy was due to mainlanders' traditionally low intake of calcium. Soya bean products were targeted because they have the highest protein content of plant foods.
"The point for the dairy sector it that it must address the management of milk processing, to rebuild public trust," He said, referring to lingering concerns over safety. Supporting the soya bean sector was necessary because "China lags behind other countries in seed breeding and processing technology."
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.21food.cn/html/news/35/1249521.htm
RRJ Capital Injects $250M In Joint Venture With Shanghai Bright Dairy
Shanghai-based Bright Dairy & Food Co., Ltd. and Hong Kong-based Asian private equity firm RRJ Capitalhas signed an agreement, in which RRJ Capital will invest RMB1.525 billion ($250 million) in Bright Dairy's subsidiary Shanghai Bright Holstan Co., according to a company announcement. The investment will be made in U.S. dollar and in cash. After the completion of the deal, Shanghai Bright Holstan will become a Sino-foreign joint venture company. Bright Dairy will hold 55% of the joint venture, while RRJ Capital will hold the remaining 45%. The companies say that they will use the investment on constructing new dairy farms and improve its existing dairy operations.
Before the RRJ Capital investment, Bright Dairy held 80% of Shanghai Bright Holstan. Bright Dairy acquired the remaining 20% from a minority shareholder, Bright Food Group. Bright Dairy then integrated all of its existing and constructing dairy farms, as well as all related operations into the Shanghai Bright Holstan platform. Private equity firms have been very active in China's dairy industry lately. Last November, Hong Kong-listed Chinese dairy firm Yashili International Holdings Ltd. says that Temasek Holdings, Hopu Investment Management Co. and three private investors will buy a 13.24% stake of the company from China Mengniu Dairy for HK$1.6 billion ($213 million). In another deal, Affinity Equity Partners is said to invest $123 million into a joint venture with Beijing Capital Agribusiness Group to focus on growing its dairy farming business. Last September, Kohlberg Kravis Roberts & Co. and CDH Investments formed a joint venture with Modern Dairy to build two large-scale dairy farms in China.
The Chinese dairy sector has already provided profitable returns for some private equity firms. Last May, KKR and CDH Investments agree to sell their stakes in China Modern Dairy to China Mengniu Dairy in a potentially profitable partial exit. According to Euromonitor, China's total dairy consumption grew at 10% compound annual growth rate over the past five years, with premium dairy product consumption growing significantly faster than the overall market. Premium dairy product consumption's market share also expanded from 10% to 19%. Despite the strong growth, China's per capita liquid milk consumption is less than 10kg per year, compared to 32kg in Japan and 78kg in the United States. RRJ currently manages $6 billion across two private equity funds focused on China and South-East Asia.
The firm is founded by Richard Ong, former founder and CEO of Hopu Fund. Before that, Ong spent 15 years with Goldman Sachs with the latest position as co-head of Asia Ex Japan investment banking. The firm's co-CEO is Charles Ong, formerly with Temasek Holdings holding positions including chief investment officer and chief strategy officer.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.
http://finance.chinanews.com/stock/2014/02-13/5834114.shtml
Increasing aquatic production in January, 2014
According to the General Directorate of Fisheries, the total of aquatic production has estimated reach 399,100 tonne, increased by 4.1% year-on-year.
From beginning of year 2014 to 17th January, there was more 139 hectare Tra catfish farming with 60 million Tra catfish breeding in Mekong Delta.
From beginning of year 2014 to 15th January, the total of shrimp farming in Mekong Delta was 127,475 hectares, in which black tiger shrimp farming was 120,441 hectare and whiteleg shrimp farming was 7,034 hectare.
From 15th December, 2013 to 1th January, 2014, the harvest area was 39,278 hectare with 19,502 tonne in volume.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China dairy industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.
http://baodientu.chinhphu.vn/Hoat-dong-Bo-nganh/Thang-1-San-luong-thuy-san-tang-41/192474.vgp
French Dairy Company Danone Boosts Its Stock Ownership in Mengniu Group:
French dairy company Danone said Wednesday it will increase its shareholdings in China Mengniu Dairy to 9.9 percent through a private placement worth HK$ 5.15 billion ($664 million), making it the second-largest shareholder in Mengniu. China Mengniu will issue 121.24 million shares to a venture company formed by Danone and China's State-owned food and oil manufacturer COFCO Corporation at HK$42.5 per share, according to a statement posted on the Hong Kong bourse by Mengniu. Mengniu CEO Sun Yiping said in the statement that her company hopes to work closely with COFCO, Danone and Danish dairy firm Arla Foods to become a global dairy products producer.
"Chilled yogurt business has a faster growth rate than the fresh dairy products business, and Mengniu hopes Danone's increased stock ownership could contribute to its yogurt production and sales," Chen Lianfang, an analyst from Beijing Orient Agribusiness Consultant, told the Global Times Wednesday.
Mengniu's major rival Yili Group has a bigger slice of China's overall dairy market, but Mengniu is currently the market leader in yogurt products, said Chen. Danone, the world's biggest yoghurt maker, purchased Mengniu shares at a 15.3 percent premium to the share price of the previous trading day, according to the statement. Prior to the private placement, Danone held about 4 percent of Mengniu stocks. Danone hopes the enhanced level of cooperation with Mengjiu could help Danone gain access to China's huge dairy market and better promote its brand, said Franck Riboud, chairman and CEO of Danone Group. "The deal could prove to be a valuable one as an investment with good returns, and also secure more dairy resources for cheese and diversify Danone's product line, and streamline its business structure," Yan Qiang, a senior analyst on dairy industry with Beijing-based Hejun Consulting, told the Global Times on Wednesday. Danone's attempt to enter the Chinese market solely through its own efforts had proved a failure, and it needed to tie itself up with a local player with a strong brand value, Chen said, explaining what the deal meant for Danone.
With a large population base and low milk per capital consumption level, China as a market for dairy products has huge potential, so the increase of its stake in Mengqiu would also be a confidence boost for Danone's investors, according to Yan. After the deal, COFCO, Danone, and Arla Foods will respectively own 16.3 percent, 9.9 percent and 5.3 percent of Mengniu shares. Mengniu plans to use the proceeds to reduce debt and consolidate its capital structure. In June 2013, Mengniu acquired Guangdong-based Yashili International Holdings Ltd with CNY 9.73 billion ($1.61 billion) as part of a plan to expand its milk powder business. In the first half of 2013, Mengniu's milk powder business realized operating revenue of CNY 451 million while its rival Yili's milk powder business reaped CNY 3 billion in revenue, according to the two firms' interim reports. Information about Mengniu's latest financial results was not available to the public by press time. However, Danone's increase of its Mengniu shares is not likely to produce any major impact, Chen told the Global Times. The same opinion was shared by Yan. Lifted by the news, Mengniu's shares skyrocketed as much as 9.5 percent to HK$40.35, but the price retreated as investors cashed in at the closing.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.