Page 176 - 2019 White Paper on the Business Environment in China
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9 White Paper on the Business Environment in China
but smaller fish as well. Cultural changes had to be made. milk. Consumption of milk and dairy quadrupled from
An annual fishing ban on China’s rivers during the prime 1995 to 2010 among urban residents and nearly sextupled
spawning months from March to July was initiated to among rural areas (McMillan). The Global Change Biology
protect aquatic resources and biodiversity as overfishing researchers predict that by 2050, China will be consuming
threatens resources. The ban covers the main streams, an average 82 kilograms of milk per person annually, up
tributaries and lakes along the Yangtze, Huaihe, Minjiang from a mere two kilograms in 1961. China is not only the
and Pearl Rivers. The annual fishing ban was initiated in world’s leading importer of milk, but also its fourth-largest
2002 on the Yangtze River, the country’s longest, and on producer—despite its long history of dairy-free diets. With
the Pearl River in 2011. The ban was extended from three increased globalization, the desire for milk is mounting in
months to four in the Yangtze River in 2016 and in the Pearl China, despite the fact a high proportion of Asians lactose-
River in 2017. In February 2018, China announced it would intolerant or lactase-deficient (Bryce).
initiate an annual fishing ban on the Yellow River between
April 1 and June 30. It is the first time China’s government The huge demand for dairy commodities in Chinese
has banned fishing in the river (Xinhua, Fishing Ban market reached nearly 3.3 billion pounds in 2018. The
Begins). Many lakes are also included on the annual ban growth of Chinese demand for dairy products is still around
including Poyang Lake, China’s biggest freshwater lake, 12 percent, which is a healthy development trend. It is in
near Hongwei Village of Nanchang City, in east China’s line with the national conditions of China’s population
Jiangxi Province. In 2017, the collective moratorium on growth, continuous urbanization and the overall
river and lake fishing led to shortages of domestically improvement of national income. Faced with consumer
produced fishmeal and higher seafood prices (Harkell). demand for high quality dairy products, the domestic
dairy sector is maturing and the industry is slowly moving
Other changes are taking place in the industry as from small farms to large-scale productions to meet
well. A Chinese fishery company has launched a massive demand. However, due to severe grassland degradation
deep-sea salmon farming facility in the eastern province and insufficient scientific reserve in grazing, China will
of Shandong to help meet the country’s growing appetite continue to rely on imports to meet demand (SIAL).
for seafood. The fully submersible net cage called Deep
Blue No 1, the world’s biggest at 35 meters high, will be Eggs
deployed in the Yellow Sea about 130 nautical miles east
of Rizhao where the cold water is believed to be a suitable Because China requires about a billion eggs per day,
habitat for the fish. The cage has a volume of 50,000 cubic egg production is leaving the back yard coops for factory
meters and could generate a harvest of about 1,500 tons floors. Where modern standardized processes are expected
of salmon per season. It is the first attempt to set up to raise quality and safety. That’s an important step in a
such an open sea farm in China and more could follow, country where melamine-tainted eggs and eggs with high
with Xinhua estimating the Yellow Sea could support an antibiotic residues have featured in a series of food safety
industry of more than 100 billion yuan (US$15.7 billion). scandals in recent years. The process is also creating a
Salmon is growing in popularity in China, with the country higher demand for branded eggs. Most egg producers now
consuming about 70,000 tons of the fish each year. China have between 20,000 and 50,000 hens. Those remaining—
imported 40,000 tons in 2017, most of it from Norway and especially those with less than 10,000 birds—are likely
Chile. China has tried to raise its production of farmed to be shut down soon as local governments favor larger
salmon but there are limits on the areas that can be used producers that can be more easily scrutinized. These egg
for aquaculture. Deputy agriculture minister Yu Kangzhen factories are supplied by highly automated plants such
said farming in the deep sea and outer ocean was the as China’s Huayu Agricultural Science and Technology Co.
natural choice to ease pressure on fisheries closer to shore. Ltd. and EW Group’s joint venture genetics business Hy-
The new cage marked the beginning of that shift back to Line International, the world’s biggest hatchery of layer
domestic fisheries (Tang). chicks (birds raised to produce eggs rather than meat).
By producing 200,000 females a day—around 60 million
Milk layers a year (one day a week is for cleaning)—it can meet
demand from larger farms who want to buy day-old chicks
Globally, milk consumption is set to increase by 60 in one batch. Automatic grading machine can handle
percent in the next three decades. The primary driving 60,000 eggs an hour. Once hatched, female chicks go to
force of this growth is China with its growing appetite for automatic beak-clipping machines that process around
176
but smaller fish as well. Cultural changes had to be made. milk. Consumption of milk and dairy quadrupled from
An annual fishing ban on China’s rivers during the prime 1995 to 2010 among urban residents and nearly sextupled
spawning months from March to July was initiated to among rural areas (McMillan). The Global Change Biology
protect aquatic resources and biodiversity as overfishing researchers predict that by 2050, China will be consuming
threatens resources. The ban covers the main streams, an average 82 kilograms of milk per person annually, up
tributaries and lakes along the Yangtze, Huaihe, Minjiang from a mere two kilograms in 1961. China is not only the
and Pearl Rivers. The annual fishing ban was initiated in world’s leading importer of milk, but also its fourth-largest
2002 on the Yangtze River, the country’s longest, and on producer—despite its long history of dairy-free diets. With
the Pearl River in 2011. The ban was extended from three increased globalization, the desire for milk is mounting in
months to four in the Yangtze River in 2016 and in the Pearl China, despite the fact a high proportion of Asians lactose-
River in 2017. In February 2018, China announced it would intolerant or lactase-deficient (Bryce).
initiate an annual fishing ban on the Yellow River between
April 1 and June 30. It is the first time China’s government The huge demand for dairy commodities in Chinese
has banned fishing in the river (Xinhua, Fishing Ban market reached nearly 3.3 billion pounds in 2018. The
Begins). Many lakes are also included on the annual ban growth of Chinese demand for dairy products is still around
including Poyang Lake, China’s biggest freshwater lake, 12 percent, which is a healthy development trend. It is in
near Hongwei Village of Nanchang City, in east China’s line with the national conditions of China’s population
Jiangxi Province. In 2017, the collective moratorium on growth, continuous urbanization and the overall
river and lake fishing led to shortages of domestically improvement of national income. Faced with consumer
produced fishmeal and higher seafood prices (Harkell). demand for high quality dairy products, the domestic
dairy sector is maturing and the industry is slowly moving
Other changes are taking place in the industry as from small farms to large-scale productions to meet
well. A Chinese fishery company has launched a massive demand. However, due to severe grassland degradation
deep-sea salmon farming facility in the eastern province and insufficient scientific reserve in grazing, China will
of Shandong to help meet the country’s growing appetite continue to rely on imports to meet demand (SIAL).
for seafood. The fully submersible net cage called Deep
Blue No 1, the world’s biggest at 35 meters high, will be Eggs
deployed in the Yellow Sea about 130 nautical miles east
of Rizhao where the cold water is believed to be a suitable Because China requires about a billion eggs per day,
habitat for the fish. The cage has a volume of 50,000 cubic egg production is leaving the back yard coops for factory
meters and could generate a harvest of about 1,500 tons floors. Where modern standardized processes are expected
of salmon per season. It is the first attempt to set up to raise quality and safety. That’s an important step in a
such an open sea farm in China and more could follow, country where melamine-tainted eggs and eggs with high
with Xinhua estimating the Yellow Sea could support an antibiotic residues have featured in a series of food safety
industry of more than 100 billion yuan (US$15.7 billion). scandals in recent years. The process is also creating a
Salmon is growing in popularity in China, with the country higher demand for branded eggs. Most egg producers now
consuming about 70,000 tons of the fish each year. China have between 20,000 and 50,000 hens. Those remaining—
imported 40,000 tons in 2017, most of it from Norway and especially those with less than 10,000 birds—are likely
Chile. China has tried to raise its production of farmed to be shut down soon as local governments favor larger
salmon but there are limits on the areas that can be used producers that can be more easily scrutinized. These egg
for aquaculture. Deputy agriculture minister Yu Kangzhen factories are supplied by highly automated plants such
said farming in the deep sea and outer ocean was the as China’s Huayu Agricultural Science and Technology Co.
natural choice to ease pressure on fisheries closer to shore. Ltd. and EW Group’s joint venture genetics business Hy-
The new cage marked the beginning of that shift back to Line International, the world’s biggest hatchery of layer
domestic fisheries (Tang). chicks (birds raised to produce eggs rather than meat).
By producing 200,000 females a day—around 60 million
Milk layers a year (one day a week is for cleaning)—it can meet
demand from larger farms who want to buy day-old chicks
Globally, milk consumption is set to increase by 60 in one batch. Automatic grading machine can handle
percent in the next three decades. The primary driving 60,000 eggs an hour. Once hatched, female chicks go to
force of this growth is China with its growing appetite for automatic beak-clipping machines that process around
176
