Since the reform and opening up, China's dairy processing industry has developed rapidly. In the output value of China food industry10.3 trillion yuan, the dairy industry achieved 50.942 billion yuan, and realized product sales income of 47.833 billion yuan. At present, there are more than 500 dairy enterprises/kloc-0, of which more than 400 have annual sales of more than 5 million yuan and more than 200 have annual sales of more than 1 100 million yuan. Through inter-provincial and inter-regional mergers and acquisitions to effectively allocate resources, the scale and strength of dairy enterprises have gradually grown, and a number of dairy enterprise groups with considerable scale and technical level have emerged, and the industry concentration has increased year by year. Dairy enterprises and dairy farming have become a major investment hotspot at present, and many foreign-funded enterprises and some well-known enterprises across industries have joined the dairy production industry.

China government's attention to dairy processing industry, the introduction of foreign advanced technology and equipment, and the application of scientific and technological achievements in domestic dairy processing industry have greatly improved the technical level of dairy processing industry and promoted the scale and collectivization development of dairy industry. The per capita milk production in China is 18kg, which is lower than the average milk production in developing countries (36kg) and far lower than that in the world (103kg) and developed countries (3 12kg). At present, the conversion rate of dairy products processing in China is about 20%, which is lower than 80% in developed countries.

From the perspective of market structure, it can be divided into four categories: first, national brands represented by Mengniu and Yili; Second, regional brands represented by New Hope, Weiwei, Xiajin, Guangming and Sanlu; Third, Beijing Sanyuan, Jinan Jiabao, Nanjing Wei Gang, Xi Anyinqiao and other local brands with local capital cities as their base markets; Fourth, foreign brands represented by Danone in France and Nestle in Switzerland. In the competition, the basic pattern of dairy industry market has been formed, and due to the restrictions of consumption habits, transportation, milk supply and other industry characteristics, the future development direction of dairy market will be the pattern of national famous brands plus regional brands and local brands, and gradually form their own development characteristics.

The main problem is that the product production structure is unreasonable. The annual consumption of imported cheese, cream, milk powder and other products is equivalent to 10% of the total output of dairy products in China, but there is a large backlog of domestic milk powder. This situation shows that the dairy production structure in China is not reasonable. Although there are dairy products such as liquid fresh milk, whole milk powder, stage milk powder and fortified milk powder, the production and supply of cheese and butter are still insufficient. The development of dairy products in China needs to be strengthened. China is a country with a long history of dairy production and processing. As early as the Yuan Dynasty, cheese and milk powder were recorded as military food. In the long historical process, China has formed processing technologies such as milk wine and yogurt, but how to develop and step into modern production is an urgent problem to be solved.