Replacement of milk prices will bring another shuffle March 1 will meet the final deadline

There are less than 20 days! According to the Shandong Provincial Bureau of Quality Supervision, from March 1, 2011 onwards, enterprises that have not regained production licenses must stop production of dairy products, infant formula milk powder and other products. This means that it takes less than 20 days for milk companies to renew their permits. Since the new regulations for milk industry access have significantly raised the barriers to entry in the dairy market, market participants generally expect that the replacement of new certificates by the dairy industry will result in a reshuffling of the dairy industry.

In order to further regulate the safety of dairy products, AQSIQ recently released the “Detailed Rules for the Examination of License Conditions for Production of Infant and Infant Formula Milk Powder (2010 Edition)” and the “Detailed Rules for Examination of License Conditions for Production of Dairy Products (2010 Edition)”. The two rules clearly require that dairy companies must re-apply for production licenses. Companies that have not received a permit by March of this year will be ordered to withdraw from the market.

Dairy production enterprises' production licenses are regarded as dairy enterprises' "growability permits", and recertification of "growability permits" will restrict the dairy industry's production threshold through further restrictions on the production conditions of dairy companies. The industry estimates that this will trigger a melamine incident. Another major industry reshuffle. According to the new regulations, dairy product manufacturing companies must be equipped with appropriate testing equipment and carry out self-inspection on 64 indicators such as food additives and melamine, and the company must have inspection equipment and capabilities related to the melamine inspection project and must not carry out commissioned inspections. Provincial Quality Supervision Bureau officials estimated that in order to renew a new “life permit”, dairy companies need at least 2 million yuan to 3 million yuan for rectification investment, which is not a small investment for small-scale dairy companies.

Yu Shaoming, general manager of Shandong High Speed ​​Bioengineering Co., Ltd., said that renewing the new “Enrollment Card” is not a small investment in the company and can accelerate the integration of the dairy market. This is also a good thing for consumers because of the adoption of dairy products. The industry cleans up and rectifies, can guarantee the production of milk products more at ease. Dairy expert Wang Dingmian believes that 20% to 25% of the replacement companies will be forced to withdraw from the dairy market, and those companies that have exited the market will either have to switch production or they may only accept the fate of being discontinued or acquired.