Chapter 76 Dairy Industry
The development of dairy farms never happens overnight.

Due to long-term isolation, my country has generally lagged behind the world's leading level in high-quality and high-yield dairy cow breeding technology by more than 20 years.

There are few dairy cows, their breeds are poor, and their yield is low.

Most of the more than 2,000 dairy companies in the country have not formed their own milk production bases.

However, the domestic economic development situation has been getting better and better in recent years, and the consumption capacity of the people and the demand for dairy products have also been growing rapidly.

In 2001, the Ministry of Agriculture issued the "Opinions on Accelerating the Development of Animal Husbandry", and the tariffs on imported dairy cows were significantly reduced. In addition, there was a series of project funding support.

From then on, my country ushered in a new round of peak in imported dairy cows.

Dairy cows are being imported on a large scale all over the country, usually in quantities of thousands or tens of thousands, and the import volume is fierce.

Thinking of this, Guo Yang asked curiously: "Secretary Chen, the country's policies are so good now, don't you have any plans to import dairy cows in the past two years?"

Secretary Chen narrowed his eyes and asked, "Why, Muhe has plans to import dairy cows?"

Guo Yang did not rush to deny it.

Seeing him like this, Secretary Chen sighed, "In the past two years, the import of dairy cows in China has been too crazy. The market is favorable and local governments, in order to achieve political achievements, have given subsidies and loan interest subsidies to stimulate farmers and herdsmen to buy cows."

"Oh? How come?" Guo Yang also wanted to learn some industry insider information through the livestock enterprise.

"The market is so crazy that before the end of this year, the quarantine business for imported dairy cows has been lined up until the end of next year."

Having said that, Secretary Chen glanced at Guo Yang.

“So, even if Alfalfa wants to import dairy cows, it will take a year to get in line.”

"Moreover, the number of dairy cows that the Ministry of Agriculture has approved to be imported from New Zealand and Australia this year and next year exceeds 11."

"But according to the information we have, Australia has a total of 180 million dairy cows, but only 50 of them are of the first-class superior breed, while most of those imported by my country are of the second and third categories."

"Some companies spend a lot of money to import dairy cows from abroad in order to make money, but they end up importing a lot of low-quality dairy cows. Some are bought in whole groups, and then they have to face adaptability issues after they come in."

"Some cattle traders even falsify pedigrees and lines. It is very risky to use such cattle as breeding cattle, which will mess up the dairy cattle breeding system across the country."

Seeing Secretary Chen's worried look, Guo Yang also knew that although the domestic dairy industry has made great strides in the past two years.

But behind the prosperity there are many hidden worries, such as the frequent incidents of milk dumping in southern regions.

Because local dairy companies limited their purchases, dairy farmers in Hubei Province dumped more than 5 kilograms of spoiled milk into farmland; Jinling Dairy poured the fresh milk rejected by the milk station into fish ponds; and West China Dairy in Sichuan Province poured tons of white milk into the sewer.

Guo Yang continued to probe and said: "If Hutubi does not import dairy cows in the next two years, the status of the largest breeding farm in the northwest will be worrying."

Secretary Chen smiled and said, "Hutubi also has plans to import dairy cows. The Ministry of Agriculture has approved us to import 3500 Holstein cows."

"The company has also sent professional technicians to accompany the import agents to foreign countries to conduct head-to-head inspections. Only 100 out of 10 cattle can be selected, and they will be screened again before loading."

"In addition, next year we will use the existing high-yield dairy cow breeds to produce 1800 high-quality high-yield dairy cow embryos. Through embryo bioengineering technology, we will directly transplant them into dairy cows raised by farmers, and produce 500-600 high-yield dairy cows."

Guo Yang was surprised. He had visited the embryo production base in Hutubi, but could this be applied?
"Hutubi has completely mastered embryonic bioengineering technology???"

Secretary Chen showed a proud look on his calm face, "We started this research in 1988! After more than ten years of hard work, it's time to get results."

Guo Yang also calmed down and thought, after all, it was recommended by the Ministry of Agriculture, so it is normal to have some stuff.

But he also had in mind that the scope of cooperation with Hutubi might need to be expanded.

"Secretary Chen, can you tell me the price of imported dairy cows from New Zealand and Australia?"

Chen Ting hesitated for a while, but thinking of the capital strength of Alfalfa Agriculture and Animal Husbandry, he decided to tell everything.

"In the early days of dairy cow imports, the price of young cattle with calves over 18 months old from New Zealand and Australia was just over US$300, but now it has risen to nearly US$500 per head, and the domestic landed price has reached US$1100."

Guo Yang calculated and felt that although the price was high, it seemed acceptable.

But he saw Secretary Chen shook his head and said uncomfortably: "But when the imported cattle reach the farmers, they will cost at least 1.8 to 2 yuan."

Guo Yang was also stunned. The price difference was a bit outrageous!
This is directly doubled!
Guo Yang looked at Secretary Chen in confusion, but he just shook his head.

"No one can save on some of the costs in the middle. Besides, Hutubi is very strict about quality, so the price won't be much cheaper."

“It’s okay that the price paid by farmers is high, but the quality is also very questionable.”

"Farmers use them for production instead of breeding. A cow can give birth to six litters and produce very little milk, so the benefits are very low. After six or seven years, the cows are eliminated again, and the cost cannot be recovered."

“Is the moon abroad really rounder than the one at home?”

"There are problems with the imported dairy cows, and the nitrite content of imported American milk powder is more than three times higher than the standard."

……

After leaving Hutubi, Guo Yang and his team went straight to Mongolian Province.

Bameng Agricultural Reclamation is a unique enterprise with agriculture, animal husbandry and fishery as its main industries.

Its predecessor was an agricultural and forestry ranch and a labor reform farm in the 1950s.

As time goes by, like the agricultural reclamation in Xinjiang Province, Heilongjiang Province, Yunnan Province, Ningxia Province and other places, it has become a backbone force for stabilizing and building the border.

When Guo Yang and others arrived here, they also reached an agreement with the Bameng Agricultural Reclamation Corporation to purchase 1000 dairy cow breeding stock for next year.

Moreover, the Bameng Agricultural Reclamation Area was in the midst of a period of management system reform, and the newly appointed leadership team implemented a series of policies in a bold and decisive manner.

At the same time, the Palestinian Alliance has signed a contract with Australia for a project to import 2000 dairy cows, and technical personnel have gone abroad to select cows.

The second batch of import plans has also been reported to the Ministry of Agriculture.

As for the source of funds for the Bameng, in addition to its own funds and support from professional banks.

Guo Yang also learned from the news spread by farmers that the Bameng Agricultural Reclamation Group had signed dairy cow loan agreements with Mengniu Company and Huiyuan Beverage.

Mengniu Company promised to provide Bameng Agricultural Reclamation with a guaranteed loan of 6000 to 8000 yuan per cow.

Although the purposes of the two are different, one is to buy cows and the other is to find a source of milk.

But at this moment, Alfalfa Agriculture and Animal Husbandry and Mengniu Dairy have also been connected.

蒙牛乳业自1999年7月成立到2002年，短短三年时间，在全国乳制品企业中的排名便由第1116位上升到了第4位。

At this time, Mengniu's annual sales reached 20 billion, but there was still a big gap from the sales of more than 50 billion of the top two dairy brands, Yili and Bright.

At this time, the three giants of China's dairy industry were still Sanyuan in Beijing, Yili in Mongolia and Guangming in Shanghai.

With decades of history and geographical advantages, Beijing Sanyuan has gained an indisputable dominant position, with over 70% of the local market share, making it difficult for challengers to break into its market.

Bright Dairy has the largest urban consumer group in the country and in 2001 it took the top spot in the domestic dairy industry.

Compared with Guangming in Shanghai and Sanyuan in Beijing, Yili from Meng Province does not have a market with a population of tens of millions to support it.

This meant that Yili had to fight all over the country from the very beginning, and it had no other choice.

With the support of the capital market, Yili has become the industry leader in the liquid milk field after several years of battles.

Just when the three giants of the dairy industry were fighting fiercely for market share, no one expected that New Hope Group, owned by the feed king, also announced that it had joined the battle.

In addition, second-tier brands such as Wahaha, Weiwei Group, Guangdong Yantang, Wushi Zhiyou, Shenzhen Chenguang and other local brands, in order to defend their own homes, are more focused on highlighting their own personality and differences.

For example, Sanlu’s milk powder ranked first in the country.

However, among the nearly 2000 dairy companies in China, less than 10% actually have their own milk sources.

Among them, Mengniu is a typical representative of "paying less attention to upstream milk source construction and more attention to terminal marketing".

Compared with them, Alfalfa Agriculture and Animal Husbandry is still a toddler.

(End of this chapter)