Sunday, January 23, 2011

Clean up dairy industry to start or accelerate the audit industry reshuffle

 After several months of ideological struggle, Yang Min (a pseudonym) and his two shareholders made a painful decision: the hard business for 8 years to sell the factory changed.

According to the Ministry of Industry, National Development and Reform Commission, the State Administration of Quality Supervision jointly issued the Recently, all over the country are being carried out on infant formula, including dairy producers, including the re-audit certification, on a small scale, poor production conditions, quality assurance, weak enterprises, according to the law firm out, shut down by law.

the industry, the re-examination, the enterprise must have for melamine, including more than 60 projects, including the self-test capability, and proposed capacity requirements, which means that a considerable part of the enterprise will be blocked outside of the barriers to entry.


audit clearance being carried out

improvement. But in recent years, problems have occurred when the milk powder case also, dairy quality and safety situation is not optimistic.

does not meet the above requirements on access conditions in the industry on the technology and equipment, product quality, energy and water consumption, sanitation and protection, safety and social responsibility requirements of the dairy processing enterprises or project, requiring a deadline for rectification, the rectification period at the end of January 2011.

the same time, under construction, proposed to undertake a comprehensive dairy industry clean-up. The content does not meet any of the clean-up projects under construction, to make it stop building the rectification period; on the proposed project, in strict accordance with industry access requirements, focus on strengthening the initial scale construction projects, supporting milk base, layout reasonable, necessary conditions, and other investors audit, to prevent blind investment and duplicated construction, to prevent illegal investment.

2010 �� 9 16, the State Council issued review of conditions of production license re-examination, the enterprise does not meet the conditions ordered to stop production and sales, a deadline for correction. November 1, 2010, AQSIQ announced the access to dairy products and infant formula milk powder production license of the enterprise, shall be submitted to prove that to meet the on December 31 made before the re-manufacturing license application. Since March 1, 2011 onwards, who have not traveled to regain the production license, according to law, dairy products and infant formula milk powder and other products.

bear the cost

review the new regulations increased the number of regular review of projects, especially infant formula milk powder required to be equipped with the appropriate manufacturer testing equipment, food additives, melamine and other indicators of self-test 64. Enterprises must have the test items related to melamine testing equipment and capability, shall not be entrusted to test, and inspection staff in the independent testing of melamine capacity of at least 2 people or more.

from?

pressure.

even afford to buy this set of testing equipment, ~ 1,500 yuan 1,200 yuan a day testing costs, milk prices will increase for small business pressure.

desperation, Yang Min and two other shareholders decided to sell the factory.

In addition, the scale of the new regulatory requirements on the production of a large number of small and medium enterprises will be turned away. Dairy industry, said Wang Ding, cotton, milk according to the number of different north and south, Because milk is limited, even if the production capacity of 100 tons less than the size of the Nissan.

oligopoly structure highlights

Wang Ding cotton is expected that this review will result in cleaning up the country a large number of small dairy producers out of business.

According to reports, the number of dairy producers currently around 1,800, of which the top 5 companies in the market share of 60% to 70%, industry concentration is very high.


market prices and prices of raw milk by a handful of companies control the interests of consumers and dairy farmers vulnerable.

cotton appears in Wang Ding, review clean-up does to a certain extent, purify the domestic dairy market, improve quality and safety of dairy products, but also may lead to the normal supply of dairy products can not.

out of stock of the phenomenon of low-income families, they can not buy high-end milk powder, large enterprises can also produce medium and low infant formula, the issue should be included within the scope of relevant considerations.

(This article Source: Daily News of: Juan-Juan Zhang)

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