(Yicai) March 5 -- Representatives from Chinese dairy giants New Hope Group, China Mengniu Dairy and China Feihe emphasized key issues such as the importance of going global, technological innovation and improving national nutrition during the ongoing Two Sessions, which are the country’s annual policy setting meetings.

Overseas expansion is very beneficial for Chinese companies, said Liu Yonghao, chairman of Chengdu-based New Hope and a member of the Chinese People’s Political Consultative Conference, which is the country’s top political advisory body. Products sold in overseas markets often generate higher profits than those sold domestically, with margins ranging from 10 percent to 100 percent higher.

When companies expand abroad, they should not just export products, Liu said. The key is to "head out, establish a presence and integrate locally." New Hope's approach in the early stages of going global involved hiring many local employees with salaries higher than the local average, respecting local laws, religions and cultures, while actively promoting awareness of Chinese brands.

The Chinese dairy industry is at a critical juncture, transitioning from rapid scale expansion to focusing on quality and efficiency, said Shi Yudong, research and development director at Hohhot-based Mengniu and a deputy of the National People’s Congress, the country’s parliament. However, there are still gaps in technological innovation.

Shi suggested establishing a national innovation center for lactic acid bacteria to focus on breakthroughs in key bottleneck technologies such as lactic acid bacteria strains used in dairy products, milk-based ingredients, and functional proteins. He also proposed including high-quality lactic acid bacteria strains and superior dairy cow genetic resources in the country’s key agricultural seed development support programs. In addition, he encouraged companies to develop higher value-added products such as functional dairy products and cheese to meet more diverse consumer demand.

Feihe Chairman Leng Youbin focused on two main issues, namely increasing people’s intake of high-quality protein and promoting the deep processing of dairy products.

Forty-five percent of Chinese adults do not consume enough protein, Leng said, citing data. Nearly 90 percent of the elderly deliberately reduce their intake and more than 70 percent of the people surveyed do not know how to scientifically supplement their protein needs. He called on the industry and the media to work together to improve public understanding of nutrition.

In terms of deep processing, Leng pointed out that key ingredients for infant formula, such as whey protein and lactoferrin, have long relied on imports, which poses a risk of supply disruptions. He suggested increasing investment in the independent R&D of dairy protein ingredients to push the domestic industry toward higher value-added products.

Editor: Kim Taylor