Page 140 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China

year, data from the National Bureau of Statistics China imported 2.3 million tons of beef, accounting
showed (Xinhua, “China’s Dairy Output to Top 39 for a quarter of its consumption. 70% of the beef
Mln Tonnes in 2022”). cattle used for breeding are imported, hindering
the sustainable development of the industry.
The continued growth in dairy cattle stock and By 2025, 400 new variety bulls should be being
milk production results in a change in raw milk produced a year, with the aim of supplying 70%
supply and demand. In 2022, raw milk demand of beef breed stock in the country. An important
will only grow at a rate of 7% or more to absorb agricultural tool during the agrarian age, cattle
the current rapid growth in capacity. China’s dairy freed farmers from heavy farm work and greatly
herd is expected to reach 6.6 million in 2023. increased grain production. At present, breeding of
By the end of 2021, China’s dairy herd stood at the fifth generation of Huaxi cattle has begun and
5.6 million head, an increase of 550,000 since the variety's core breeding population will gradually
2020, with an annual growth rate of nearly 11%. expand in the next five to 10 years (Yimeng).
Numbers are expected to reach 6.2 million by
the end of 2022. In 2023, 6.6 million cattle are China has taken some of their breeding
expected, after which the growth rate will slow programs to space and back. When China's
down with a conservative estimate of 100,000 Shenzhou-14 spaceship returns to Earth late
head per year in 2024 and 2025. Consumption 2022, it will bring home some unusual packages
growth is the driving force behind the sustainable -- brewer's yeast grown in space. It will be part
development of China’s dairy industry. In the long of the harvest of a 6-month-long breeding
run, the growth rate of milk consumption in China experiment aboard the Tiangong space station,
is 4%-5%. During the COVID-19 pandemic in 2020 which is under construction. Scientists say that the
and 2021, the growth rate of milk consumption microorganism, exposed to deep space, will induce
was relatively high, reaching 8%-9%. In 2021, genetic mutations that may create superior strains
the average output of commercial raw milk was on the ground. Alongside the yeast samples, the
77,000 tons daily, and the demand for raw milk "passengers" of China's latest long-duration space
increased by 9%. There was still a supply gap of journey also include seeds of rice, soybeans,
about 3,000 tons. In 2022, the average commercial vegetables, and a variety of bacterial species that
raw milk production is expected to reach 86,000 are essential in food preservation. They were
tons/day. The raw milk demand growth rate can selected by the Beijing Capital Agribusiness & Foods
only reach 7% or more to absorb the fast-growing Group. The company's goal is to carry plants and
production capacity. However, with the end of microorganisms into orbit, recover them, and use
the pandemic, there is uncertainty about whether them to provide fine quality food and beverages.
the high consumption growth rate is sustainable Space breeding refers to exposing seeds and
(China’s Milk Consumption Growth Rate Determines strains to cosmic radiation and microgravity during
Development of Dairy Farming). a spaceflight mission to mutate their genes (Xinhua,
“Harvest from Heavenly Breeding”).
Breeding Market

Chinese scientists have independently bred a
new cattle variety, the "Huaxi Cattle", which should
help break the country's reliance on importing
beef cattle for breeding, according to the Chinese
Academy of Agricultural Sciences (CAAS). The new
variety was approved by the National Livestock and
Poultry Genetic Resources Committee in December
2021. The research team led by CAAS's Institute of
Animal Sciences bred the new variety in Wulagai
district in the Inner Mongolia autonomous region.
The success was 43 years in the making. In 2021,

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