Research Report on China’s Cow Farms in Scale

【Table of Contents】 

Research Report on China’s Cow Farms in Scale 0
Contents of Figures & Tables 7
Research Conclusions 11
Research Background 15
1. Overview of Dairy Farming in China 17
1.1 Breeds of Cow and Distribution 17
1.1.1 Breeds 17
1.1.2 Regional Layout of Different Breeds 17
1.2 Cow Milk Production 17
1.2.1 Cow Inventory 17
1.2.2 Cow Milk Production 18
1.2.3 Yield of Cow 19
1.2.4 Raw Milk Layout 19
1.2.5 Raw Milk Procurement Price 22
1.3 Policy Environment for Cow Farming 23
1.3.1 Development Goal 23
1.3.2 Dairy Processing and Dairy Animal Farming 24
1.3.3 Dairy Animal Farming and Raw Milk Procurement 25
1.3.4 National Standard on Raw Milk 27
1.3.5 Supporting Policy 28
1.4 Technology and Equipment of Cow Farms 32
1.4.1 Gene Improvement 32
1.4.2 DHI Performance Test 35
1.4.3 Milking Equipment and Cold Milk Tanks 36
1.4.4 Farm Management System 44
1.5 Input and output of Cow Farming 44
1.5.1 Composition of Input 44
1.5.2 Composition of Output 45
1.5.3 Changing Trend of Input and Output 45
1.6 Cow Farming Modes 47
1.6.1 Concept for Cow Farming Modes 47
1.6.2 Different Scales and Farming Modes 48
1.6.3 Main Factors Affecting Changes of Farming Modes 49
2. Overview of Cow Farms 51
2.1 Proportion of Scaled Cow Farms 51
2.2 National Layout of Cow Farms 52
2.3 Feeding Methods of Cow Farms 54
2.4 Yield of Cow Farms 54
2.5 Herd Structure of Cow Farms 54
2.6 Milking Methods 55
2.7 Feed Structure of Cow Farms 55
2.8 Profit of Cow Farms 55
Special Column I: How Dongxing Cow Farm in Jiaxing City, Zhejiang Generate Sound Economic Benefit 56
Special Column II: Dairy Farming Profit and Plan of Modern Farming (01117.HK) 57
3. Current Status of Cow Farms in Main Provinces 60
3.1 Inner Mongolia 60
3.1.1 Development Plan on Dairy Farming and Supporting Policy 60
3.1.2 Cow Breeds and Layout 62
3.1.3 Milk Procurement Price 65
3.1.4 Layout of Scaled Cow Farming 65
3.1.5 Daily Milk Handling Capacity of Processing Companies 67
3.1.6 Mechanized Milking 67
3.1.7 Milk Stations and Their Management 67
3.1.8 Fodder and Feed 68
3.1.9 Cow Import 68
3.1.10 Interest Binding Methods between Farms and Processing Companies 68
3.1.11 Input and Output of Cow Farms 68
3.2 Heilongjiang 69
3.2.1 Development Plan on Dairy Farming and Supporting Policy 69
3.2.2 Cow Breeds and Layout 70
3.2.3 Milk Procurement Price 73
3.2.4 Layout of Scaled Cow Farming 74
3.2.5 Daily Milk Handling Capacity of Processing Companies 75
3.1.6 Mechanized Milking 75
3.2.7 Milk Stations and Their Management 75
3.2.8 Fodder and Feed 75
3.2.9 Cow Import 76
3.2.10 Interest Binding Methods between Farms and Processing Companies 76
3.2.11 Input and Output of Cow Farm 76
3.3 Liaoning 77
3.3.1 Development Plan on Dairy Farming and Supporting Policy 77
3.3.2 Cow Breeds and Layout 78
3.3.3 Milk Procurement Price 79
3.3.4 Layout of Scaled Cow Farming 79
3.3.5 Daily Milk Handling Capacity of Processing Companies 81
3.3.6 Mechanized Milking 81
3.3.7 Milk Stations and Management 81
3.3.8 Fodder and Feed 82
3.3.9 Cow Import 82
3.3.10 Interest Binding Methods between Farms and Processing Companies 82
3.3.11 Input and Output of Cow 82
3.4 Hebei 83
3.4.1 Development Plan on Dairy Farming and Supporting Policy 83
3.4.2 Cow Breeds and Layout 85
3.4.3 Milk Procurement Price 88
3.4.4 Layout of Scaled Cow Farming 88
3.4.5 Daily Milk Handling Capacity of Processing Companies 89
3.4.6 Mechanized Milking 90
3.4.7 Milk Stations and Their Management 90
3.4.8 Fodder and Feed 90
3.4.9 Cow Import 90
3.4.10 Interest Binding Methods between Farms and Processing Companies 90
3.4.11 Input and Output of Cow 91
3.5 Shandong 91
3.5.1 Development Plan on Dairy Farming and Supporting Policy 91
3.5.2 Cow Breeds and Layout 92
3.5.3 Milk Procurement Price 94
3.5.4 Layout of Scaled Cow Farming 94
3.5.5 Daily Milk Handling Capacity of Processing Companies 95
3.5.6 Mechanized Milking 95
3.5.7 Milk Stations and Their Management 95
3.5.8 Fodder and Feed 96
3.5.9 Cow Import 96
3.5.10 Interest Binding Methods between Farms and Processing Companies 96
3.5.11 Input and Output of Cow 97
3.6 Shaanxi 97
3.6.1 Development Plan on Dairy Farming and Supporting Policy 97
3.6.2 Cow Breeds and Layout 99
3.6.3 Milk Procurement Price 101
3.6.4 Layout of Scaled Cow Farming 101
3.6.5 Daily Milk Handling Capacity of Processing Companies 102
3.6.6 Mechanized Milking 102
3.6.7 Milk Stations and Their Management 102
3.6.8 Fodder and Feed 102
3.6.9 Cow Import 102
3.6.10 Interest Binding Methods between Farms and Processing Companies 103
3.6.11 Input and Output of Cow 103
3.7 Henan 104
3.7.1 Development Plan on Dairy Farming and Supporting Policy 104
3.7.2 Cow Breeds and Layout 106
3.7.3 Milk Procurement Price 108
3.7.4 Layout of Scaled Cow Farming 108
3.7.5 Daily Milk Handling Capacity of Processing Companies 109
3.7.6 Mechanized Milking 109
3.7.7 Milk Stations and Their Management 109
3.7.8 Fodder and Feed 109
3.7.9 Cow Import 110
3.7.10 Interest Binding Methods between Farms and Processing Companies 110
3.7.11 Input and Output of Cow 110
3.8 Xinjiang 111
3.8.1 Development Plan on Dairy Farming and Supporting Policy 111
3.8.2 Cow Breeds and Layout 112
3.8.3 Milk Procurement Price 114
3.8.4 Layout of Dairy Farming Scales 114
3.8.5 Daily Milk Handling Capacity of Processing Companies 115
3.8.6 Mechanized Milking 115
3.8.7 Milk Stations and Their Management 115
3.8.8 Fodder and Feed 116
3.8.9 Cow Import 116
3.8.10 Interest Binding Methods between Farms and Processing Companies 116
3.8.11 Input and Output of Cow 116
Special Column III: Cow Farming Profit and Development Plan of Xinjiang Xibu Animal Farming Co., Ltd. 117
3.9 Shanxi 119
3.9.1 Development Plan on Dairy Farming and Supporting Policy 119
3.9.2 Cow Breeds and Layout 120
3.9.3 Milk Procurement Price 123
3.9.4 Layout of Scaled Cow Farming 123
3.9.5 Daily Milk Handling Capacity of Processing Companies 123
3.9.6 Mechanized Milking 124
3.9.7 Milk Stations and Their Management 124
3.9.8 Fodder and Feed 124
3.9.9 Cow Import 124
3.9.10 Interest Binding Methods between Farms and Processing Companies 124
3.9.11 Input and Output of Cow 125
3.10 Ningxia 126
3.10.1 Development Plan on Dairy Farming and Supporting Policy 126
3.10.2 Cow Breeds and Layout 126
3.10.3 Milk Procurement Price 128
3.10.4 Layout of Scaled Farming 128
3.10.5 Daily Milk Handling Capacity of Processing Companies 129
3.10.6 Mechanized Milking 129
3.10.7 Milk Stations and Their Management 129
3.10.8 Fodder and Feed 130
3.10.9 Cow Import 130
3.10.10 Interest Binding Methods between Farms and Processing Companies 130
3.10.11 Input and Output of Cow 130
3.11 Jiangsu 131
3.11.1 Development Plan on Dairy Farming and Supporting Policy 131
3.11.2 Cow Breeds and Layout 132
3.11.3 Milk Procurement Price 133
3.11.4 Layout of Scaled Cow Farming 134
3.11.5 Daily Milk Handling Capacity of Processing Companies 134
3.11.6 Mechanized Milking 135
3.11.7 Milk Stations and Their Management 135
3.11.8 Fodder and Feed 135
3.11.9 Cow Import 135
3.11.10 Interest Binding Methods between Farms and Processing Companies 136
3.11.11 Input and Output of Cow 136
3.12 Sichuan 136
3.12.1 Development Plan on Dairy Farming and Supporting Policy 136
3.12.2 Cow Breeds and Layout 138
3.12.3 Milk Procurement Price 139
3.12.4 Layout of Scaled Cow Farming 139
3.12.5 Daily Milk Handling Capacity of Processing Companies 140
3.12.6 Mechanized Milking 141
3.12.7 Milk Stations and Their Management 141
3.12.8 Fodder and Feed 141
3.12.9 Cow Import 141
3.12.10 Interest Binding Methods between Farms and Processing Companies 142
3.12.11 Input and Output of Cow 142
3.13 Beijing 143
3.13.1 Development Plan on Dairy Farming and Supporting Policy 143
3.13.2 Cow Breeds and Layout 143
3.13.3 Milk Procurement Price 144
3.13.4 Layout of Scatted Cow Farming 144
3.13.5 Daily Milking Handling Capacity of Processing Companies 145
3.13.6 Mechanized Milking 145
3.13.7 Milk Stations and Their Management 145
3.13.8 Fodder and Feed 146
3.13.9 Cow Import 146
3.13.10 Interest Binding Methods between Farms and Processing Companies 146
3.13.11 Input and Output of Cow 146
3.14 Shanghai 147
3.14.1 Development Plan on Dairy Farming and Supporting Policy 147
3.14.2 Cow Breeds and Layout 148
3.14.3 Milk Procurement Price 148
3.14.4 Layout of Scaled Cow Farming 149
3.14.5 Daily Milk Handling Capacity of Processing Companies 149
3.14.6 Mechanized Milking 149
3.14.7 Milk Stations and Their Management 150
3.14.8 Fodder and Feed 150
3.14.9 Cow Import 150
3.14.10 Interest Binding Methods between Farms and Processing Companies 150
3.14.11 Input and Output of Cow 150
3.15 Tianjin 151
3.15.1 Development Plan on Dairy Farming and Supporting Policy 151
3.15.2 Cow Breeds and Layout 152
3.15.3 Milk Procurement Price 153
3.15.4 Layout of Scaled Cow Farming 154
3.15.5 Daily Milk Handling Capacity of Processing Companies 155
3.15.6 Mechanized Milking 155
3.15.7 Milk Stations and Their Management 155
3.15.8 Fodder and Feed 155
3.15.9 Cow Import 155
3.15.10 Interest Binding Methods between Farms and Processing Companies 155
3.15.11 Input and Output of Cow 156
4. Survey on Production Management of Representative Cow Farms in China 157
4.1 Layout of Scaled Cow Farms 157
4.1.1 Composition 157
4.1.2 Regional Layout 157
4.2 Survey on Production Management of Cow Farms of Different Scales 159
4.2.1 Inner Mongolia Heligeer Modern Animal Farming Co., Ltd. 159
4.2.2 Beijing Luhe No. 1 Farm 160
4.2.3 Tianjin Runhua Cow Farm 161
4.2.4 Hebei Shuangwa Luanxian Farm 162
4.2.5 Heilongjiang Anda Youyi Farm 163
4.2.6 Liaoning Dalian Shengda Animal Farming Co., Ltd. 164
4.2.7 Shanghai Bright Jinshan Cow Farm 164
4.2.8 Fujian Changfu No. 33 Farm 166
4.2.9 Shandong Zaozhuang Xianghe Dairy Co., Ltd. Farm 167
4.2.10 Hubei Huanggang Xianglin Dairy Cattle Farm 167
4.2.11 Luqilin Dairy Cattle Farm, Zhengzhou, Henan 168
4.2.12 New Hope Hongya Pilot Farm, Sichuan 169
4.2.13 Xi’an Caotan Farm, Shaanxi 170
4.2.14 Tianshan Animal Farm, Xinjiang 171
4.2.15 Tangshan Fonterra Farm, Hebei 172
5. company’s Assesment of the Current Status and Judgment of Trend of Dairy Cattle Farms in China 174
5.1 Assesment of the Current Status 174
5.1.1 Challenges Faced by Scaled Dairy Cattle Farms 174
5.1.2 Potential and Opportunity for Scaled Dairy Cattle Farms 175
5.2 Trend of Scaled Dairy Cattle Farms 176
Annex 177
Annex 1: Raw Milk Production, Supply and Demand in China, 2009-2011 177
Annex 2: List of Scaled Dairy Cattle Farms with Inventory over 1000 177
 

【Figures & Tables】

Figure
Figure 1-1 Changes of Cow Inventory in China, 1996-2010 18
Figure 1-2 Changes of Cow Milk Production in China, 1996-2010 18
Figure 1-3 Changes of Cow Yield in China, 1999-2010 19
Figure 1-4 Average Price Trend of Raw Milk in the 10 Leading Producing Provinces in the North, by Month, 2008-2011 23
Figure 1-5 Trend of Gross Profit Rate for Different Farming Scales, 2004-2009 46
Figure 1-6 Changes of Cow Farming Profit, by Month, 2009-2010 47
Figure 2-1 Proportion of Scaled Farms (zones) with over 100 Inventory in National Total, 2009 52
Figure 2-2 Proportion of Cow Inventory of Scaled Farms (zones) with over 100 Inventory in National Total, 2009 53
Figure 2-3 Proportion of Cow Inventory of Scaled Farms (zones) with over 1000 Inventory in National Total, 2009 53
Figure 3-1 Layout of Cow Inventory in Inner Mongolia, 2009 62
Figure 3-2 Map of Inner Mongolia 62
Figure 3-3 Layout of Scaled Cow Farming in Inner Mongolia, by Cow Inventory, 2009 65
Figure 3-4 Layout of Dairy Farms (zones) of Different Scales in Main Regions in Inner Mongolia, 2009 66
Figure 3-5 Layout of Cow Inventory in Heilongjiang, 2009 70
Figure 3-6 Map of Heilongjiang 71
Figure 3-7 Map of Heilongjiang Farm Reclamation 72
Fig 3-8 Layout of Scaled Cow Farming In Heilongjiang, by Cow Inventory, 2009 74
Fig 3-9 Layout of Scaled Farms with Over 100 Inventory in Heilongjiang and Harbin, 2009 74
Fig 3-10 Map of Liaoning 78
Fig 3-11 Layout of Scaled Farming in Liaoning, by Cow Inventory, 2009 80
Fig 3-12 Layout of Scaled Farms with Over 100 Inventory in Liaoning, 2009 80
Figure 3-13 Map of Hebei 85
Figure 3-14 Layout of Scaled Cow Farming in Hebei, by Cow Inventory, 2009 89
Figure 3-15 Layout of Scaled Cow Farms with over 100 Inventory in Hebei, 2009 89
Figure 3-16 Map of Shandong 92
Figure 3-17 Layout of Scaled Cow Farming in Shandong, by Cow Quantity, 2009 94
Figure 3-19 Map of Shaanxi 99
Figure 3-20 Layout of Scaled Cow Farming in Shaanxi, by Cow Inventory, 2009 101
Figure 3-21 Map of Henan 107
Figure 3-22 Layout of Scaled Cow Farming in Henan, by Cow Inventory, 2009 108
Figure 3-23 Map of Xinjiang 112
Fig 3-24 Layout of Scaled Cow Farming in Xinjiang, by Cow Inventory, 2009 115
Figure 3-25 Map of Shanxi 120
Figure 3-26 Layout of Scaled Cow Farming in Shanxi, by Cow Inventory, 2009 123
Figure 3-27 Map of Ningxia 127
Figure 3-28 Layout of Scaled Cow Farms in Ningxia, by Cow Inventory, 2009 128
Figure 3-29 Map of Jiangsu 132
Figure 3-30 Layout of Scaled Cow Farms in Jiangsu, by Cow Inventory, 2009 134
Figure 3-31 Map of Sichuan 138
Figure 3-32 Layout of Scaled Cow Farms in Sichuan, by Cow Inventory, 2009 140
Figure 3-33 Map of Beijing 143
Figure 3-34 Layout of Scaled Cow Farms in Beijing, by Cow Inventory, 2009 145
Figure 3-35 Map of Shanghai 148
Figure 3-36 Map of Tianjin 152
Figure 3-37 Layout of Scaled Cow Farms in Tianjin, by Cow Inventory, 2009 154
Fig 4-1 Layout of Scaled Cow Farms in China, by Cow Inventory, 2009 157
Fig 4-2 Regional Layout of Scaled Cow Farms with Inventory Above 1000, by Quantity of Farms, 2009 157
Fig 4-3 Regional Layout of Cow Farms with Over 100 Inventory, by Cow Inventory, 2009 158
Fig 4-4 Regional Layout of Cow Farms with Over 500 Inventory, by Cow Inventory, 2009 159
Fig 4-5 Regional Layout of Cow Farms with Over 1000 Inventory, by Cow Inventory, 2009 159
Table 4-3 Productin Management of Tianjin Runhua Cow Farm, 2010 161

Table 1-1 Milk Production and Milk per cow in Different Regions in China, 2009 21
Table 1-2 Total Milk Production of the TOP 10 Provinces in China, 2009 22
Table 1-3 Cow Milk Production of the TOP 10 Cities in Provincial Level in China, 2009 22
Table 1-4 Prefectural-Level Cities with over 500,000 tons of Cow Milk Production in China, 2009 22
Table 1-5 Sensual Indices 28
Table 1-6 Physical and Chemical Indices 28
Table 1-7 Microorganism Indices 28
Table 1-8 Breeds of Breeding Bulls of Main Breeding Companies in China and Inventory, 2010 33
Table 1-9 Foreign-funded Breeding Bull Stations and Main Breeding Companies in China 35
Table 1-10 Major Indices of Production Performance of DHI Tested Farms, 2010 36
Table 1-11 Production Performance of Different Inventory of DHI Tested Farms, 2010 37
Table 1-12 List of Recommended Milking Equipment, 2009-2010 38
Table 1-13 List of Recommended Milk Storage Tanks (cold storage),2009-2010 44
Table 1-14 Feed Cost and Changes of Raw Milk Procurement Price for Different farming Scales, 2004-2009 47
Table 2-1 Change of Cow Farming Scale, 2002-2009 52
Table 2-2 Input and Output of Each Cow on Large/medium-scale Farms, 2009 56
Table 2-3 Cow Farming Profit of Modern Farming (01117.HK) 59
Table 3-1 Cow Inventory of Main Counties (cities at the county level/districts) in Inner Mongolia, 2009-2010 64
Table 3-2 Input and Output for Each head of Cow on Medium-scale Cow Farms in Inner Mongolia, 2009 69
Table 3-3 Cow Inventory of Main Counties (cities of the county level/districts), 2009-2010 73
Table 3-4 Input and Output of Each Head of Cow of Large Farms in Heilongjiang, 2009 78
Table 3-5 Input and Output of Each Head of Cow at Large/medium-scale Farms, 2009 83
Table 3-6 Cow Inventory of Main Counties (cities at the county level/districts) in Hebei, 2009-2010 87
Table 3-7 Cow Inventory of Main Counties (cities of the county level/districts), 2009-2010 94
Table 3-8 Input and Output of Each Head of Cow at Large Farms in Shandong, 2009 98
Table 3-9 Cow Inventory of Main Counties (cities at the county level/regions) in Shaanxi, 2009-2010 101
Table 3-10 Input and Output of Each Head of Cow on Large Farms in Shaanxi, 2009 104
Table 3-11 Cow Inventory of Main Counties (cities at the county level/regions), 2009-2010 108
Table 3-12 Input and Output of Each Head of Cow of Large/medium Farms in Henan, 2009 111
Table 3-13 Cow Inventory of Main Counties (cities at the county level/region) in Xinjiang, 2009-2010 114
Table 3-14 Input and Output of Each Head of Cow on Large and Medium Farms in Xinjiang, 2009 118
Table 3-15 Core Sector and Operational Status of Xibu Animal Farming, 2010 119
Table 3-16 List of Subsidy to Xibu Animal Farming from Shihezi and Agricultural Branch No. 8, 2010 119
Table 3-15 Cow Inventory of Main Counties (cities at the county level/district) in Shanxi, 2009-2010 123
Table 3-16 Input and Output of Each Cow in shanxi, 2009 126
Table 3-17 Cow Inventory Scale of Main Counties (cities at the county level/district), 2009-2010 128
Table 3-18 Input and Output of Each Head of Cow on Farms in Ningxia, 2009 131
Table 3-19 Input and Output of Each Head of Cow of Farms in Sichuan, 2009 143
Table 3-20 Input and Output of Each Head of Cow oof Farms in Beijing, 2009 148
Table 3-21 Input and Output of Each Head of Cow in Farms in Shanghai, 2009 152
Table 3-22 Input and Output of Each Head of Cow of Farms in Tianjin, 2009 157
Table 4-1 Production Management of Inner Mongolia Heligeer Modern Animal Farming Co., Ltd., 2010 160
Table 4-2 Production Management of Beijing Sanyuan Luhe No. 1 Farm, 2010 161
Table 4-4 Production Management of Hebei Shuangwa Luanxian Farm, 2010 163
Table 4-5 Production Management of Heilongjiang Anda Youyi Farm, 2010 164
Table 4-6 Production Management of the Farm of Liaoning Dalian Shengda Animal Farming Co., Ltd., 2010 165
Table 4-7 Production Management of Shanghai Bright Jinshan Cow Farm, 2010 166
Table 4-8 Production Management of Fujian Changfu No. 33 Farm, 2010 167
Table 4-9 Production Management of Shandong Zaozhuang Xianghe Dairy Co., Ltd. Farm, 2010 168
Table 4-10 Production Management of Hubei Huanggang Xianglin Dairy Cattle Farm, 2010 169
Table 4-11 Production Management of Luqilin Dairy Cattle Farm, Zhengzhou, Henan, 2010 169
Table 4-12 Production Management of New Hope Hongya Pilot Farm, Sichuan, 2010 170
Table 4-13 Production Management of Xi’an Caotan Farm, Shaanxi, 2010 171
Table 4-14 Production Management of Tianshan Animal Farm, Xinjiang, 2010 172
Table 4-15 Production Management of Tangshan Fonterra Farm, Hebei, 2010 173