BOABC Highlights： Analysis of Heating News in Dairy Industry

By CnAgri2013-01-05 11:25:38 Print     Scaled and standardized farming was still promoted in the nation in December. Dairy farming regions continued to facilitate quality fodder growing. Raw milk price still kept at a high level, whereas the price for corn and soymeal dropped due to the sluggish price for animal products. Meanwhile the import price for alfalfa started to rise, dairy cattle farming profit was still positive on the whole, yet there are more uncertainties. The growth of dairy production slowed down in November, the industry still witnessed a fast growth but the margin slipped. The international price for milk powder still kept at a low level and there was a sharp growth of import. China Customs recently decided to lower the tariff on three types of special infant/young child’s formula milk powder import from 20% to 5% from 1^st January 2013 and it is projected there shall be a rapid growth of import of such milk powder.

    According to BOABC, the advantage of the reduction of the import cost shall be taken solely by the circulation link and the retail price is not foreseen to go down.

From “China Dairy Market Monthly Report”