Dairy mergers and reorganization rules are expected to be announced in August

Recently, the reporter confirmed from multiple parties that the details of the dairy industry have been formulated and submitted to the State Council. It is expected to be announced in August. It is worth mentioning that, in order to improve the competitiveness of domestic dairy companies, the details of compulsory domestic leading dairy enterprises to launch high-end milk powder products to the game with foreign brands, and related incentives will also be released later.

According to informed sources, the plan to promote mergers and reorganization of dairy products has been reported to the State Council on July 6 and was originally scheduled to be announced on July 20. However, differences may arise between the Ministry of Finance and the National Development and Reform Commission and other relevant departments during the process of document formulation. Further development is needed. Coordination has led to delays in the introduction of the time until August. In the detailed rules that have been submitted, it is clear that economic levers will be used to promote financial, financial, and taxation policies, and the GMP technological transformation of dairy enterprises will receive financial support. In addition, the policy of supporting the establishment of large-scale dairy enterprises will be reflected in the detailed rules and will be an important part of the document. In June, Gao Fu, deputy inspector of the Consumer Products Industry Division, once stated that the Ministry of Industry and Information Technology will develop 10 large-scale dairy products companies with annual sales revenue of more than 2 billion yuan, self-owned intellectual property rights and international competitiveness in two years. group.

Different from past industry policies, this merger and reorganization rule can be described as highly practical. According to the above-mentioned sources, the Ministry of Industry and Information Technology directly expressed hopes of Mengniu, Yili, Wandashan and Gaoyuanbao in the process of detailed consultation. The companies launched a high-end milk powder brand and competed with foreign milk companies and promised to provide certain incentive policies. This has also been recognized by the above-mentioned enterprises.

Talking about the forthcoming regulations, Zhang Yikang, vice chairman of the board of directors of Gaobao Zhiniu Dairy Industry, expressed the hope that the state will provide more support in building and demonstration of the construction of dairy sources such as breeding, pasture and grassland construction. “We have to go to Beijing in a few days to discuss the relevant aspects of the rules. On the whole, we will comply with the national policy and hope that the country will not lower the standards and allow companies to carry overhead in the middle,” Zhang Yikang told a Beijing Business Daily reporter.

“The purpose of this round of merger and reorganization plan of the country is to enhance the competitiveness of domestic brands, so we actively support it. The preferential policies for funds are unavoidable. Because the acquisitions involve huge amounts of money, some companies may face funding problems, so the country will certainly be financing. Support will be provided in terms of taxation policies, which will ease the cost pressure of domestic brands and make them more focused on quality and safety.” Jian Aihua, a food industry researcher at CIC Advisors, said that the problem of finding quality acquisition targets and funding is all about milk. The key points in the process of merger and reorganization of the product industry. However, looking for high-quality bids requires enterprises to solve their own problems. In addition, the number of high-quality standards in China is limited, and large-scale dairy enterprises will inevitably compete with each other in the future, and the possibility of pushing up acquisition costs cannot be ruled out.