Investment potential report of animal husbandry industry in Heilongjiang
    The animal husbandry is an important part of the national economy in our province, is a leading industry that promotes rural economic development and agricultural structure adjustment, and increases farmers' income. With the growth of rigid demand of animal products and the space of consumption, the animal husbandry industry development has a very broad prospect, is a sunrise industry which never fades. In 2012, the output value of animal husbandry in Heilongjiang reached 135 billion yuan, and animal products processing industry reached 90.99 billion yuan, nearly 40% of total output value of the food industry and agriculture respectively. The rapid development of animal husbandry industry effectively undertakes the responsibility of processing, transformation and appreciation of the grain, and settles down the surplus labor force in the way of "departing farming without leaving native land", in order to continue increasing farmers' income, constructing a province famous for green food industry, speeding up agricultural industrialization and rural urbanization, and promoting the economic and social integration of urban and rural.

I. The current situation of the development of livestock industry in Heilongjiang

    Provincial party committee and the provincial government attache great importance to animal husbandry industry development, introducing a series of supporting policies for many times, to promote the sustained and healthy development of animal husbandry industry. In 2012, the meat, eggs, and milk production reached respectively 3.74, 1.2 and 8.57 million tons. 80% of milk, 45% of egg, and 60% of pigs sold in various forms throughout the country and to the international market, guaranteeing the effective supply for animal products market. With the development of animal husbandry industry, 25 billion tons of grain are transferred, and 2.4 million rural surplus labor are installed every year. the average income of animal husbandry for rural residents in our province has reached more than one thousand yuan. In the counties which are famous for their animal husbandry industry, such as Shuangcheng, Zhaodong, Dumeng, Anda, Bayan, the revenue of animal products takes up more than a third of the farmers' income. The animal husbandry industry has strengthen the county and enrich the residents, promoting the development of the county economy, and our province has become a national high-quality, secured, assured green food base.

    Dairy industry - a leading position in the nation

    Cows raising: in 2012, our province had dairy cows up to 2.69 million, with a milk production of 8.57 million tons, accounting for 18.1% and 22.8% of the country's total. Total amount of high-quality holstein cows, the number of standard dairy farms and the total output value of the dairy industry rank the first in the nation, one out of six cups of milk we Chinese drink comes from Heilongjiang.
    Dairy products processing: the number of dairy processing enterprises, production capacity, production technology level, and the output value of milk powder and infant formula products rank the first in the nation. There exist 64 dairy processing enterprises above designated size, 1/10 of the total; fresh milk processing capacity is up to 10.04 million tons, with 7 out of the national top ten dairy companies in our province. In 2012, our province produced 475 thousand tons of milk, 1.341 million tons of liquid milk, accounting for 34.8% and 6.3% of the country's total respectively. The province's dairy industry achieved an output value of 35 billion yuan, the proportion of the whole food industry was 15.1%, with 1.6 billion yuan for taxes. In Shuangcheng, Anda, Dumeng, Kedong have become dairy county, for that 50% to 70% of revenues come from the dairy industry.

II. Obvious advantages of developing animal husbandry in Heilongjiang: solid foundation and good opportunity

1. unique geography
    
    Heilongjiang province is located in north latitude 43 ° - 53 °, this vast area is situated in the world recognized "golden belt" of corn and cow. As the world's excellent habitable area for human animal and plant, its ecological environment is very good, including the atmosphere, water quality, and soil. Heilongjiang has four distinct seasons, with a cold climate compared with high temperature and high humidity environment in the south, the rate of disease for animals is low, so the number of dead livestock and poultry is much fewer. With the harmless disposal space, Heilongjiang's animal products are famous for their high quality, environmental friendly, and safety.

2. rich resources

    Feed resources in our province are very rich, which can be used to raw materials for feed and agricultural and sideline products in a good quantity and quality with low cost. In 2012, the province's grain output was 115.2 billion jins(=0.5kg), besides residents food, industrial and seed uses, the rest can fully meet the demand of 140 million pigs' feeds; 65 million mu(=0.0667 hectares) of grassland products 80 billion jins of straw and 16 billion jins of forage grass per year, which can feed 4 million cows; 180 million mu of cultivated land can take in excrement of 540 million pigs, calculated on the base that one mu of cultivated land can take in three pigs' excrement. Abundant food, forage feed and arable land for animal husbandry in our province provide a solid material guarantee and development space.

3. solid foundation

    In 2012, the province's total output of meat-eggs-milk reached 13.51 million tons, the rate of high-quality is close to 100% for cows and pigs, and this rate for beeves reached more than 65%. Through the scale expansion and assets reorganization, animal products processing enterprises constantly create famous brands, realizing optimization and upgrading of cluster development, the market share of animal products and consumer recognition is increasing. Having the National Dairy Center, Northeast Agricultural University, Harbin Veterinary Research Institute(HVRI) and other large or medium-sized research institutions in our province, Heilongjiang provides strong technology support for the development of dairy industry. Solid foundation and strong scientific research guarantee the development of livestock industry in our province.

4. high quality high efficiency

    Our province is a major production area for grains, so our feed resources are abundant, inexpensive. the price of corn is 14.3% lower than the national average, and the breeding profit is higher than the national average, which offsets the higher logistics costs. Recent three years, each cow benefits 2600 yuan per year, each raw pig profits 200 yuan, and cattle 1800 yuan. If we only calculate corn costs, the price to raise pigs, cows, and beef cattles is lower than the national average, respectively, 75, 580, and 50 yuan per capita. Meanwhile, the quality of livestock production in Heilongjiang is high, and the price is also good. Take Beijing for an example, the price of pork in our province is 0.4 yuan/kg higher than other parts of China. Overall, the breeding, processing, transportation, and the whole industrial chain efficiency in Heilongjiang keeps a high level in the country.

5. valuable opportunity

    The party and the state attach great importance to agriculture, make the economic and social integration of urban and rural our national major strategic decisions. The new provincial party committee and government put forward the objectives of placing first the green food industry, building the first national integrated farming province, putting the development of animal husbandry industry on more important position, making it become the leading industry of the rural economy and pillar industries. Especially in early April this year, the state council determined our province to be the first to carry out the comprehensive reform experiment of modern agriculture, the animal husbandry industry will become an important part of modern agriculture and green food industry, and cannot be replaced in the national well-off society construction, in the integration of urban and rural economic and social development.

III. Three, huge market potential and broad prospects for development

    Rigid demand of livestock is irreversibly growing, and the development space for animal husbandry industry is huge in the future

    As the world's population increases (expected to reach 7.5 billion by 2020), especially with the rapid development of economy in developing countries, the continuous improvement of people's living standard, the global demand of livestock consumption will rigidly increase. According to the prediction from the Chinese Academy of Engineering, the next 20 years, along with the development of economy and society, the growth of population(by 2020 will reach 1.45 billion), rapidly increasing of people's income (by an annual rate of 10% in 30 years, with a growth of 5% to 8% for China's economy) and the industrialization urbanization process (predicted rate is more than 60% in 2020), our country residents' demand for animal products are in a rigid and irreversible growth.

     Dairy consumption prospect analysis:

    Dairy consumption prospect analysis:

    Dairy farming and milk processing projects
    International: in 2010, the world's average consumption of dairy products was 103kg, 268 kg for the developed countries, and 50.9 kg for developing countries, in some countries in Europe and the United States this number could reach more than 300 kilograms. If we predict on the base of the world's present consumption level, by 2020, there will be a lack of dairy products about 50 million tons. And according to the level of developed countries, this number will reach 134 million tons.
    Domestic: in 2012, average dairy consumption in China was 32.4 kg, less than a third of the world's average. According to the National Bureau of Statistics and AC Nielsen Research Company, by 2020,China's infant formula market demand will be about 800 thousand tons, middle-aged and old people formula milk powder 200 thousand tons, high-end liquid milk 5 million tons, there will be a lack of 400 thousand tons of infant milk powder, 120 thousand tons of middle-aged and old people milk formula powder, and the gap is even larger in the high-end liquid milk market.
    Heilongjiang dairy county is absolutely a good choice for dairy farming construction projects (counties and cities having rangeland more than 100000 cows: Shuangcheng, Anda, Dumeng, Zhaodong, Fuyu, Lindian, Qiqihar, Gannan, etc.) We advise to choose a dairy county we recommande below and to create a dairy processing plant, processing milk, yogurt, cheese, milk powder and other products, investing in way of wholly owned or joint venture.