Import volume price of dairy products rises with the opportunity and challenge of local brands

Imported dairy products that are deeply favored by domestic consumers continue to seize the Chinese market and set off a new round of “landing boom”. This reporter recently learned from the Shenzhen Customs that from January to July this year, 6729 tons of dairy products were imported from the Shenzhen port, compared to last year. The increase was 1.2 times over the same period; the value was US$13.03 million, an increase of 1.5 times; the average import price was US$1,936 per ton, up 14.1%.

Faced with the aggressive situation in the rising price of imported dairy products, the relevant person in charge of the domestic famous brand Feihe Dairy said: “The price of imported dairy products has risen. On the one hand, consumers’ adoration of “import” has been shown. It also shows that consumers have strong spending power on dairy products. Local brands should seize the opportunity to regain lost ground in the game with imported brands."

According to Shenzhen Customs' analysis, the domestic dairy product industry has experienced continuous turmoil, and consumers’ reliance on foreign milk powder is still one of the main reasons for the increase in the volume of imported dairy products. In this regard, industry experts said that the so-called storm is actually a consumer misunderstanding of the incident to some extent, such as leather milk incident is nothing, local brands and regulators have the obligation to make their products transparent. Allowing consumers to “see” can naturally be trusted and help establish their own brand.

As early as 2010, the State Council issued the "Notice" on the safe production of dairy products, requiring food manufacturers to establish an electronic information traceability system for infant formula milk powder and raw milk powder. At present, individual dairy enterprises have begun to practice. It is understood that the company has successfully cooperated with top international brands and successfully implemented a comprehensive food safety solution. This innovative end-to-end solution enables Feihe Dairy to track down the origins and whereabouts of food, feed, ingredients and food-sourced animals in all aspects of production, processing and distribution. Xiaohe, Vice President and General Manager, Production Division, Feihe Dairy Company Guanghui said, "We will spare no effort to think of consumers, and adopt the most responsible attitude and the most transparent way to achieve various standards related to food safety."

At the same time, the Shenzhen Customs also believes that as the national income and its consumption levels increase, domestic consumers are increasingly pursuing imported high-quality dairy products as another reason why prices and prices have risen. In recent years, with the continuous improvement of national income and consumption levels, high-end dairy products have become the new darling of consumers, which has become even more prominent in the field of milk powder. The recently released second-quarter earnings report of Feihe indicated that the business income from branded milk powder reached US$54.1 million, which had a different degree of increase compared to the same period of last year and the previous quarter, and the high-end milk powder Xingfeifan and Feifan series played an important role. Pulling action.

It seems that as long as local brands produce high-end products that meet the needs of consumers, it is not far away from establishing their own brands and having loyal consumers. Recently, Premier Wen Jiabao also expressed in the survey of agricultural production and ecological construction in Hebei Province that local brands should produce high-quality milk and dairy products, and cultivate their own dairy product brands. This also shows that there is still much room for development for local brands to enter the high-end market.

Thirdly, due to rising costs and the rapid increase in the domestic market share of foreign brands, foreign brands have gradually grasped the pricing discourse, and the pace of price hikes in imported dairy products has also accelerated. Indeed, since last year, foreign milk powder has risen in price to varying degrees, and consumers can only passively accept "unreasonable."

According to statistics, the gross profit of foreign milk powder is extremely high. They use high profits to invest in high-market marketing, and thus enter a “good cycle”. The domestic milk powder will focus on R&D and quality inspection. Taking Feihe as an example, they took the initiative to use StarFlying to carry out clinical trials of feeding infant foods. Due to the high cost and high demand, there is no dairy enterprise that is willing to At the same time, at the same time, Feihe also achieved 2% of the investment in quality inspection. It is currently the highest investment in infant milk powder companies in quality inspection.

“Exotic Monks” may not necessarily read the Scriptures. Sometimes, the homegrown brands actually understand the hearts of consumers. Local brands are regaining consumer confidence through self-improvement and efforts. Perhaps, after the challenge of rising prices and prices, opportunities for domestic milk powder recovery will usher in.