Vi-COR, a manufacturer of specialized yeast-based products for dairy, poultry, swine and beef feed, recently hosted a Discover Vi-COR / China Dairy Summit at its new manufacturing facility in Mason City, Iowa. The goal was to recommend a model for developing and improving China’s dairy industry and establish a resource “think tank.”

The invitation-only event drew 20 dairy experts from universities and consulting firms across the U.S. and Vi-COR employees, all with extensive knowledge in the China dairy industry. Iowa Department of Economic Development and Mason City Chamber staffs were also, present.

Mark Holt, Vi-COR’s president and CEO, opened the summit acknowledging that China has to walk before it can run with regard to improving its dairy practices. The country needs to improve in a number of basic areas before it will become a viable market for U.S. dairy-related products and services. Holt said the first objective of the summit was to create a common understanding, by sharing personal experiences and knowledge, of the current China dairy industry. The second objective was to explore and recommend a potential model for dairy industry development that can be used as a resource for anyone in China interested in building a dairy. The summit’s final objective was to establish a “think tank” of U.S. dairy experts from among those attending the summit willing to be a resource to China dairy producers wanting to improve milk quality.

The roundtable discussion addressed China’s current reputation for having the lowest milk quality in the world. The issue of low milk quality came to a head in June when Wang Dingmian, chairman of the Guangzhou Dairy Association, announced that China’s standards on fresh milk are the lowest in the world and a national shame. He was referring to the country’s new dairy standards, which took effect June 1, 2010, and set the maximum bacteria limit in raw milk at 2 million cells per milliliter and the minimum required protein level at 2.8 grams per 100 grams. In comparison, western countries require a bacterial count of 100,000 cells per milliliter of raw milk and a protein level of 3 grams per 100 grams of raw milk.

Many summit experts, who have visited dairy farms in China, listed challenges such as dairymen underfeeding their cows, in some cases starving them. These dairy producers are not motivated to invest in feed when they get extremely low prices from the large dairy distributors who buy their milk. The insufficient feed affects cow health and in turn plays a part in high bacteria and low protein levels.

Other challenges cited included a lack of appreciation for the importance of cow comfort; lack of skilled dairy workers; shortage of land for growing feed crops; and a lack of knowledge and procedures when compared to the U.S. and European countries, with many dairymen tying cows into single stalls and milking by hand. Yet despite these challenges, there are people in China interested in building or expanding a highly productive dairy operation.

According to Ming-Jong Kiang, Vi-COR’s Northeast Asia Business Manager, a survey by China Dairy Magazine of 160 dairy farms with 200 or more cows showed that most respondents felt the ideal dairy size was 500 to 1,000 cows. While Chinese dairymen want to grow their dairy industry, they are currently ill equipped to do so and make a profit. All of which points to the necessity of education and training in best dairy practices in order for the China dairy industry to see improvement in milk quality. Experts at the summit pointed out that the training is not something that happens over a day or two. Rather, it should be a case where a dairy consultant is willing to stay on-site for 45 to 60 days.

Dairy experts at the summit recommended that distributors identify and partner with an existing dairy in China and implement standard operating procedures and best practices so that it can serve as a model. Once distributors have a workable dairy model, anyone in China interested in starting a modern dairy can contact them for guidance on building a profitable, quality dairy.

Holt, Kiang and other members of Vi-COR’s team plan to work on the initiative over the next few months to establish and implement an action timeline to keep it moving forward. “We want to help improve China’s dairy industry,” said Holt. “This initiative is in the best interest of China and its people and those who do business in China and abroad. We feel it’s an important endeavor and we want to be a part of it.” PD

—From Vi-COR news release