Experts said that while the quality of dairy products is being guaranteed, some small and medium-sized enterprises may be eliminated. "A small set of testing equipment, ranging from 2 million yuan, as much as 6 million yuan, and large-scale testing equipment is worth more than 10 million yuan. How can a small breast company be able to afford it?†After more than two months of ideological struggle, Yang Min (a pseudonym) and his two shareholders made a painful decision: to sell the factory that has been operating for eight years. .
According to the Notice on Launching Projects (Enterprises) Auditing and Clearing up in the Dairy Industry (hereinafter referred to as the “Noticeâ€) issued by the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), recently, infant formula milk powders have been gradually launched throughout the country. The dairy product manufacturers within the company re-examined and issued the licenses. For enterprises with small scale, poor production conditions and weak quality assurance ability, they were resolutely eliminated according to law and shut down according to law.
Industry sources pointed out that the re-audit requires companies to have self-inspection capabilities for more than 60 projects including melamine, and also put forward production requirements, which means that a considerable number of companies will be blocked in access thresholds. Outside.
"Since March 1, 2011, it is expected that some small and medium-sized dairy products manufacturers will be eliminated from the country, and the oligopolistic situation in the dairy products industry may become more prominent," said dairy expert Wang Dingmian.
The review and clearing is underway. The "Notice" pointed out that since the Sanlu infant milk powder incident in 2008, China's dairy industry has recovered and developed rapidly, and the quality and safety conditions have gradually improved. However, in recent years, problematic milk powder cases have also occurred from time to time, and the quality and safety of dairy products are not optimistic.
The “Notice†requires all localities to re-evaluate and rectify the dairy product projects (enterprises) that have been established in accordance with the “Dairy Products Industry Policy,†which was revised in 2009, and eliminate the backward processing capacity of dairy products according to law. The dairy processing enterprises or projects in the access conditions with respect to processes and equipment, product quality, energy consumption and water consumption, environmental health and protection, safety and social responsibility, etc., require rectification within a time limit. The deadline for rectification is as of the end of January 2011.
At the same time, it will comprehensively clean up the projects under construction and proposed dairy products. For projects that are not in compliance with any of the clean-up contents, they must stop the construction and rectify them within a set time limit. For the proposed project, strictly follow the requirements of the industry access requirements, and focus on strengthening the initial scale of the construction project and the supporting milk source base. Review the rationality of the layout and the necessary conditions for investors, prevent blind investments and redundant construction, and eliminate illegal investments.
On September 16, 2010, the General Office of the State Council issued the "Notice on Further Strengthening the Quality and Safety of Dairy Products", requesting that companies that have obtained production licenses be re-reviewed in accordance with the revised conditions for production license examination before the end of February 2011. Enterprises that do not meet the requirements are ordered to stop production and sales, and deadlines for rectification. On November 1, 2010, the General Administration of Quality Supervision, Inspection and Quarantine announced the “Detailed Rules for the Examination of Production Conditions for Infant Formula Milk Powder (2010 Edition)†and “Detailed Rules for Examination of License Conditions for Production of Dairy Products (2010 Edition)â€, requiring all current Enterprises that produce dairy products and infant formula milk powder production licenses shall, on the basis of submitting relevant documents that can prove that they meet the “Dairy Industry Industrial Policy (Revised in 2009)â€, in accordance with the requirements of the SAQSIQ, in 201012 The production license application will be resubmitted before the 31st of the month. Since March 1, 2011, if no production license has been regained, the production of dairy products, infant formula and milk powder products will cease.
Unbearable costs The "Daily Economic News (Weibo)" reporter compared the 2006 edition and the 2010 edition of the "Detailed Review Rules for Enterprises Producing Dairy Products Licensing Terms" and found that the nationwide review of the new regulations added many routine review items. In particular, infant formula manufacturing enterprises must be equipped with appropriate testing equipment and carry out self-inspection of 64 indicators such as food additives and melamine. The company must have the inspection equipment and capabilities related to the melamine inspection project, and must not conduct commissioned inspections, and the inspection personnel must have at least two independent inspection abilities of melamine.
"A set of such small-scale testing equipment is as low as 2 million yuan, as much as 6 million yuan, and the large-scale testing equipment is worth more than 10 million yuan. How can this be affordable for such a small dairy company?" It seems that only this provision can block a large number of small and medium-sized dairy products companies from entering the threshold.
"We also considered buying equipment through loans, and ultimately gave up. First, the credit crunch, especially for corporate loans like ours is even more difficult. Even if we can make loans, companies will have to bear huge credit pressure," said Yang Min.
Even with the ability to purchase this set of testing equipment, the daily testing cost of 1200 yuan to 1,500 yuan will increase operating pressure for small-sized dairy enterprises.
In desperation, Yang Min and two other shareholders decided to sell the factory.
In addition, the requirements of the new regulations on production scale also put a lot of SMEs out of the door. According to Wang Dingmian, a dairy expert, according to different amounts of milk from north to south, “Northern enterprises need to produce 300 tons per day, and southern enterprises need to produce 100 tons per day. Only a few companies can meet this requirement.†He pointed out that especially in the South, due to milk, The source is limited, even if the production capacity does not reach the scale of Nissan 100 tons.
The oligopolistic pattern highlights Wang Dingmian's prediction that the review will lead to the elimination of a large number of small and medium-sized dairy products manufacturing enterprises across the country.
According to reports, the number of dairy products manufacturers in China is currently about 1800, of which the top 5 companies have a market share of 60% to 70%, and the industry concentration is very high.
“Once 'cut off' these small and medium-sized dairy enterprises, the market will naturally flow to large enterprises, and the pattern of oligopoly in the domestic dairy products industry will become more prominent.†Wang Dingmian worried that this may lead to market prices and raw milk prices being a few Enterprise control, the interests of consumers and dairy farmers are easily damaged.
In Wang Dingmian's view, the review and clean-up can indeed purify the domestic dairy product market to a certain extent, improve the quality and safety of dairy products, and may also lead to the problem of dairy products that cannot be supplied properly.
"After these small and medium-sized enterprises have been eliminated, whether the retained companies can meet the needs of the low-end market or not, this issue deserves attention." Wang Dingmian pointed out that the phenomenon of outbreaks of infant formula in some regions has already been observed. For income families, they are unable to purchase high-end milk powder. Whether large companies can produce mid-to-high-end baby milk powder at the same time should be considered by the relevant departments.
According to the Notice on Launching Projects (Enterprises) Auditing and Clearing up in the Dairy Industry (hereinafter referred to as the “Noticeâ€) issued by the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), recently, infant formula milk powders have been gradually launched throughout the country. The dairy product manufacturers within the company re-examined and issued the licenses. For enterprises with small scale, poor production conditions and weak quality assurance ability, they were resolutely eliminated according to law and shut down according to law.
Industry sources pointed out that the re-audit requires companies to have self-inspection capabilities for more than 60 projects including melamine, and also put forward production requirements, which means that a considerable number of companies will be blocked in access thresholds. Outside.
"Since March 1, 2011, it is expected that some small and medium-sized dairy products manufacturers will be eliminated from the country, and the oligopolistic situation in the dairy products industry may become more prominent," said dairy expert Wang Dingmian.
The review and clearing is underway. The "Notice" pointed out that since the Sanlu infant milk powder incident in 2008, China's dairy industry has recovered and developed rapidly, and the quality and safety conditions have gradually improved. However, in recent years, problematic milk powder cases have also occurred from time to time, and the quality and safety of dairy products are not optimistic.
The “Notice†requires all localities to re-evaluate and rectify the dairy product projects (enterprises) that have been established in accordance with the “Dairy Products Industry Policy,†which was revised in 2009, and eliminate the backward processing capacity of dairy products according to law. The dairy processing enterprises or projects in the access conditions with respect to processes and equipment, product quality, energy consumption and water consumption, environmental health and protection, safety and social responsibility, etc., require rectification within a time limit. The deadline for rectification is as of the end of January 2011.
At the same time, it will comprehensively clean up the projects under construction and proposed dairy products. For projects that are not in compliance with any of the clean-up contents, they must stop the construction and rectify them within a set time limit. For the proposed project, strictly follow the requirements of the industry access requirements, and focus on strengthening the initial scale of the construction project and the supporting milk source base. Review the rationality of the layout and the necessary conditions for investors, prevent blind investments and redundant construction, and eliminate illegal investments.
On September 16, 2010, the General Office of the State Council issued the "Notice on Further Strengthening the Quality and Safety of Dairy Products", requesting that companies that have obtained production licenses be re-reviewed in accordance with the revised conditions for production license examination before the end of February 2011. Enterprises that do not meet the requirements are ordered to stop production and sales, and deadlines for rectification. On November 1, 2010, the General Administration of Quality Supervision, Inspection and Quarantine announced the “Detailed Rules for the Examination of Production Conditions for Infant Formula Milk Powder (2010 Edition)†and “Detailed Rules for Examination of License Conditions for Production of Dairy Products (2010 Edition)â€, requiring all current Enterprises that produce dairy products and infant formula milk powder production licenses shall, on the basis of submitting relevant documents that can prove that they meet the “Dairy Industry Industrial Policy (Revised in 2009)â€, in accordance with the requirements of the SAQSIQ, in 201012 The production license application will be resubmitted before the 31st of the month. Since March 1, 2011, if no production license has been regained, the production of dairy products, infant formula and milk powder products will cease.
Unbearable costs The "Daily Economic News (Weibo)" reporter compared the 2006 edition and the 2010 edition of the "Detailed Review Rules for Enterprises Producing Dairy Products Licensing Terms" and found that the nationwide review of the new regulations added many routine review items. In particular, infant formula manufacturing enterprises must be equipped with appropriate testing equipment and carry out self-inspection of 64 indicators such as food additives and melamine. The company must have the inspection equipment and capabilities related to the melamine inspection project, and must not conduct commissioned inspections, and the inspection personnel must have at least two independent inspection abilities of melamine.
"A set of such small-scale testing equipment is as low as 2 million yuan, as much as 6 million yuan, and the large-scale testing equipment is worth more than 10 million yuan. How can this be affordable for such a small dairy company?" It seems that only this provision can block a large number of small and medium-sized dairy products companies from entering the threshold.
"We also considered buying equipment through loans, and ultimately gave up. First, the credit crunch, especially for corporate loans like ours is even more difficult. Even if we can make loans, companies will have to bear huge credit pressure," said Yang Min.
Even with the ability to purchase this set of testing equipment, the daily testing cost of 1200 yuan to 1,500 yuan will increase operating pressure for small-sized dairy enterprises.
In desperation, Yang Min and two other shareholders decided to sell the factory.
In addition, the requirements of the new regulations on production scale also put a lot of SMEs out of the door. According to Wang Dingmian, a dairy expert, according to different amounts of milk from north to south, “Northern enterprises need to produce 300 tons per day, and southern enterprises need to produce 100 tons per day. Only a few companies can meet this requirement.†He pointed out that especially in the South, due to milk, The source is limited, even if the production capacity does not reach the scale of Nissan 100 tons.
The oligopolistic pattern highlights Wang Dingmian's prediction that the review will lead to the elimination of a large number of small and medium-sized dairy products manufacturing enterprises across the country.
According to reports, the number of dairy products manufacturers in China is currently about 1800, of which the top 5 companies have a market share of 60% to 70%, and the industry concentration is very high.
“Once 'cut off' these small and medium-sized dairy enterprises, the market will naturally flow to large enterprises, and the pattern of oligopoly in the domestic dairy products industry will become more prominent.†Wang Dingmian worried that this may lead to market prices and raw milk prices being a few Enterprise control, the interests of consumers and dairy farmers are easily damaged.
In Wang Dingmian's view, the review and clean-up can indeed purify the domestic dairy product market to a certain extent, improve the quality and safety of dairy products, and may also lead to the problem of dairy products that cannot be supplied properly.
"After these small and medium-sized enterprises have been eliminated, whether the retained companies can meet the needs of the low-end market or not, this issue deserves attention." Wang Dingmian pointed out that the phenomenon of outbreaks of infant formula in some regions has already been observed. For income families, they are unable to purchase high-end milk powder. Whether large companies can produce mid-to-high-end baby milk powder at the same time should be considered by the relevant departments.
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