One-third mainland dairy firms non-profitable
More than one-third of China’s dairy farmers and firms are non-profitable, Guangdong Dairy Association deputy chairman Wang Dingmian told the 2007 Asia Dairy Forum. According to the Guangzhou Daily, Wang laid the blame on competition over milk sources and market share, price wars and a lack of product standardization. The industry was now firmly in the regulator’s sights, he said. Other dairy association chairmen joined Wang in claiming that fiercer competition and increasing raw material costs were slashing profit margins. They also agreed that China’s dairy industry suffered from a lack of coordination in its industrial and supply chains.

Mainland airlines losing international cargo share
Mainland airlines are losing out to foreign competitors in the international cargo market, Guangzhou Daily reported. According to General Administration of Civil Aviation of China (CAAC) data, mainland firms control just 23.8% of the market in international cargo, down from 65.6% in 1995. Foreign cargo firms control 76.2%. CAAC statistics showed China’s domestic firms had just 33 cargo aircrafts capable of carrying 7700 tons or more, preventing domestic players from expanding business and protecting market share. More than 90 foreign-funded companies have now launched international postal and cargo businesses on the mainland. CAAC data also showed a regional imbalance, with eastern China accounting for 42.6% of the domestic air cargo market, south and central China 23.2% each, north China 17.5% and northwest China just 1.8%.

Unified Jilin Bank targets July launch
Changchun City Commercial Bank, Jilin City Commercial Bank and Liaoyuan City Credit Bureau will be merged to create Jilin Bank, the Economic Information Daily reported, citing Jilin province governor Han Changfu. Speaking at a regional finance conference, Han said the bank would start operating on July 1, and its restructuring would be completed by the end of the year. Han said a specialist credit and loan firm would also be created from the Changchun City Commercial Bank in Dewei in order to encourage banking in rural areas and private capital investment in rural business.

Beijing residents favoring second-hand property
According to Beijing Wo Ai Wo Jia Property Agency, second-hand property in good locations is proving increasingly popular with Beijing residents, the Economic Information Daily reported. The agency said people were attracted to these properties because they tended to be located in neighborhoods with comprehensive commercial, leisure, medical and educational facilities and also tended to be cheaper than new buildings. Chaoyang and Haidian districts had the most second-hand property transactions, while Tongzhou,  Shijingshan and Yizhuang districts were catching up fast.

Hennessy to acquire Wenjun majority stakes
Moet Hennessy announced it would acquire a 55% stake in domestic baiju maker Wenjun Distillery, China Business News reported. Industry analysts said the majority stake would give the US-based company a convenient platform to localize its premium liquor sales channels based on Chinese dining and alcohol consumption patterns. A Guangdong foreign wine distributor said the province contributed 70% to Hennessy’s total China sales volume, and that the company’s main sales channel was entertainment venues. It had a low profile in Chinese dining venues, where alcohol was consumed in larger quantities but where baijiu, the so-called Chinese wine, was dominant. Some analysts said Hennessy hoped to use Wenjun as a stepping stone to acquire Jiannanchun, a company which holds the remaining 45% stake in Wenjun, in order to form a comprehensive sales and distribution network.

New standards for frozen and instant food
New industry standards for frozen and instant food will take effect on July 1, China News reported, citing an announcement on the Ministry of Commerce’s website. The new rules, which take into account changing consumption patterns and aim to tackle current food safety problems, regulate frozen goods, rice and noodle  production, transportation and sales processes, technical requirements, inspection methods and minimum standards, logos and packaging, transportation, storage and market withdrawal. The ministry said current regulations did not accommodate the rapid development of the food industry.