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As more and more the quality of security events into the public eye, as consumers, let us look to the product from a brand focused behind the whole industrial chain. Modern food production and supply of a cross-sectoral, regional, cross-border and other features, the most important attribute?? Quality, but also with the extension of industrial chain transfer, any part of the problem may occur with large-scale circulation and proliferation of . Not only directly affect the quality and safety of the profits of the upstream and downstream businesses, and even lead to the disintegration of the whole industry chain. In addition, the quality and safety problems will result in significant social harm. " Sanlu Infant formula milk powder incident "is typical of a serious crisis in food quality and safety. It is after the estimated total amount required to recall more than 10,000 tons of milk powder involving more than 700 million yuan restitution amount, but the claims were assessed at 39 billion yuan . Sanlu in the country by the end of 2007 Sell Amounted to 10 billion yuan, 14.9 billion brand value, total assets of 1.619 billion yuan, 395 million yuan debt. Milk powder incident, the brand value disappeared, the amount of calculation and restitution, Sanlu Group has serious insolvent. December 23, 2008, Shijiazhuang Sanlu Group Intermediate People's Court announced bankruptcy. Then Erie , Mengniu and other first-line brands have been involved in two trading days of Yili cumulative drop of 15.34%, the majority of Production Line Are in a shutdown state. In Hong Kong-listed Mengniu Dairy release information as to suspension, opening the complex plunged 60 percent after-hours, a day on the evaporation of the market value of 18.822 billion Hong Kong dollars. In addition to short-term interest directly related to business losses, the whole chain, and between the enterprises of the main chain, product structure, relationship will be great changes. "Sanlu incident," many countries to limit China Dairy products Imports, which led directly from China in October 2008 from the sudden drop in dairy exports. According to Customs statistics, China's dairy exports in 2007 reached 135,000 tons, increase of 157.28 percent over the same period, in which milk powder exports more than 62,000 tons, up 201.5 percent. "Sanlu incident" broke out, China's dairy export trade suffered a serious setback, in 2008 China exported dairy products 121,000 tons, down 10.4%; At the same time, imports of milk powder made use of consumer crisis of confidence, low prices way of dumping flood the domestic market. Dairy 351,000 tons imported in 2008, an increase of 17.4%. Dairy imports 860 million U.S. dollars, up 15.8%. The backlog of domestic milk powder is relatively poor sales, leading to closure of many dairy enterprises have ceased production, dairy farmers benefit fell in some areas even slaughter of cattle farmers, cattle sold signs and dairy situation is not optimistic. "Sanlu incident" not only brought economic losses of enterprises, but also seriously affected the consumption of dairy products, consumers tend to look for imports of dairy products or dairy substitutes. Resulting Food Safety A crisis of confidence will come to covering the whole industrial chain. Related topics: Sanlu melamine To Bankruptcy Dairy industry chain problems Dairy industry chain and food production, compared to traditional agriculture, livestock, etc., are capital and technology intensive industries. It involves Feed Production, breeding, dairy, buy milk, cold-chain transport, milk processing and other links, is the first, second and third industries to the development of linkage industries, a longer chain. China's dairy industry after several years of development, generally formed a complete industrial chain. The main can be divided into three parts: the milk supply, dairy processing, and market liquidity. As shown below. Now we mainly Sanlu Group to explain the development of China's dairy industry chain specific issues. 1, milk supply chain: breeding foundation is weak, milk station monitoring vacuum. Dairy cow breeding is a whole industry chain, the most basic part of the core. However, the development of plant breeding investment in large-scale, effective long period, when China's dairy industry into the high-speed development period, dairy companies need to continually invest capital to seize the market, the milk source base of this investment has become slower effective dairy business a huge burden. This case, the Sanlu Group, was first adopted in 1986, "asset light" strategy, the specific performance of "countryside cows, milk into the city" business model. That is sold to dairy farmers, milk sold to Sanlu then. "Cows go to the countryside," a sense the least cost expansion path of reform. Sanlu Group, this method will be outsourced to the cow farmers, cattle farmers at the time the lure of profits is much higher than farming, the cattle of more and more, Sanlu's production capacity has expanded rapidly. Thus, the formation of a "farmers? Milk station? Dairy enterprises," the milk supply pattern. This model was rapidly increasing demand for dairy products in China on the environment once very successful dairy enterprises around the state to follow suit. However, the question of the hidden quality of milk is lost protection. This pattern of use of quick success, and more delayed the slow development of China's original Cow, until today, China 16 million cows, 80% of backyard breeding is mainly reflected in the weak foundation of low quality dairy farmers, backward farming methods, small scale, the number of cows yield low side. 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