May 19, 2008

Raw milk prices down in North China

Prices of raw milk in ten provinces and autonomous region in North China recorded decreases in May following efforts by dairy enterprises to push down the prices of raw milk purchase.

Wang Dingmian, Director of the China Dairy Association, revealed that the raw milk purchase prices currently range from RMB2,600/t to RMB2,800/t in North China, while the price stood at RMB3,400/t in the first quarter of 2008. By contrast, the raw milk purchase prices in South China remain unchanged.

On the other hand, Heilongjiang Province's Dairy Industry Association has issued its reference prices for the province's raw material milk trading in the harvest season. The average reference direct settlement price for milk with fat and protein content of 3.1 percent and 2.95 percent respectively between Heilongjiang's dairy processing enterprises and milk farmers will be RMB2.7/kg from May until November.

Since October 2007, Heilongjiang Province has been making efforts to optimise the dairy price coordination associations at all levels, offering support to the cooperation between dairy associations and farmers. Moreover, the province has also regularised milk farms and dairy markets, and has taken a series of measures on the management of milk collection and distribution stations. These undertakings are seen to flourish Heilongjiang's dairy products in the coming years, according to experts.