March 19, 2008

China dairy industry flourish on higher milk prices, strong demand

China's dairy sector has been on an upswing due to higher milk prices and the government's plan to double consumption of dairy products.

The country is also increasing its import of Australian dairy cows to expand the Chinese herd from its current number of 10 million head.

Australian dairy farmers are presently rebuilding their herds after the drought and pushing up prices for stock.

John Gunthorpe, the executive chairman of China Cattle Ltd., said that exporters are paying big dollars to secure cows for the China trade.

Gunthorpe said that he has seen three or four-month-old calves being sold for US$700.

The papers at the moment are advertising better than US$1000 dollars for sort of 12-month-old heifers, making the day-old heifer to be worth somewhere around US$150, he added.