Abstract:

China dairy industry experienced new trends with the emergence of high cost of milk production, high milk price and high importation in 2010. In 2011，China dairy industry is facing a crossroad. It needs to decide to go into a high cost times or to establish a production model with Chinese characteristics. This paper proposed five key indicators，including production cost per kilogram FCM，feed conversion efficiency，milk solid production，fluid milk overheating index，and feces and urine absorption index，which will play the most important roles in leading the direction of China dairy industry development. The government and the industry should implement the indicators to reveal the essential problems, put forward accurate countermeasures and encourage a sustainable development.

Key words: dairy industry; production cost per kilogram FCM; feed conversion efficiency; milk solid production; fluid milk overheating index; feces and urine absorption index