January 15, 2008

Dairy prices in China surge by 44 percent in December 

Milk prices in China reached RMB26,000 (US$3,600) per tonne in December, climbing significantly by 44 percent, the National Development and Reform Commission reported.

Raw milk in China is currently in short supply due to seasonal factors, according to industry experts.

Industry players explained that often, non-resident enterprises rush to buy milk at high prices, which results to increase of high-grade product prices.

As the milk powder import volume declined and the raw milk purchase price mechanism remained incomplete, dairy farmers did not gain profits amidst milk price increases. Some of these farmers even killed their animals, which then worsens the shortage of milk.