The current state of the Chinese dairy industry is described best as being in a period of transition, with small herd owners and managers facing the decision between expanding their operation and going out of business. As low milk prices continue to create a challenge for smaller producers, it is anticipated the trend toward larger operations will be steady, in order to balance the rising costs of doing business.
This rapid herd expansion creates an identified need for the continued education of dairy producers on modern dairy management practices, with close attention being paid to developing least cost ration formulations, while maintaining the integrity and nutrient content of feed ingredients. With this in mind, the U.S. Grains Council recently sponsored a Chinese Dairy Study Team to the United States.
The team’s itinerary included activities encompassing all aspects of the dairy business, from corn and distiller’s dried grains with solubles (DDGS) production to modern facilities, farm equipment and genetics, giving participants a breadth of exposure to U.S. industry technology and trends. Attending a short course specially designed for the group by the Babcock Institute, team members were trained by university instructors who are experts in their fields.
The team was also afforded the opportunity to visit World Dairy Expo, meeting with agribusiness representatives, attending seminars and discussing dairy techniques with dairy producers from 88 countries. Walter Chen, USGC consultant who traveled with the team, said the participants were very impressed with U.S. dairy management systems and was optimistic about the future of the Chinese dairy industry.
“This is also a good opportunity for them to learn more about U.S. DDGS,” said Chen.
As the price of Chinese corn is on the rise, the Council has seen rapid growth in DDGS imports, with approximately 250,000 to 300,000 metric tons estimated to be imported in 2009. These numbers far exceed the 8,000 tons imported in all of 2008. In order to give the team an in-depth view of the production and utilization of the co-product DDGS, they met with ethanol plant manager and toured their facilities, as well as visiting dairy operations in Wisconsin and California.
With the information the team gained from this study tour, “There is a lot of hope for the import of DDGS and some U.S. feed grains,” said Chen.