Henan Exerted Lots of Effort in Regulating Sales/purchase Order of Raw Milk, with A View to Achieving Price Setting beforehand and Actual Trading afterwards for Raw Milk Trading

Regarding price ambiguity in raw milk trading and buyer market price dominated by unilaterally by dairy enterprises, the Department of Agriculture and Rural Affairs of Henan Province, Dairy Association of China have organized multiple raw milk price talks, actively promoting the newly published “raw milk sales/purchase contract (sample text)” drafted by three ministries, in an effort to establish the mechanism of prior consultation and release of raw milk trading price across the province.
Thanks for the joint effort by the department of agriculture and rural affairs and the Dairy Association of China, Mengniu Dairy (Jiaozuo) signed the new contracts with dairy farmers of Henan in January 2020. On the basis of the contract, the two parties will sign supplementary agreements on raw milk trading price by the quarter. They will negotiate in advance and agree on milk price of the coming quarter clearly, thereby achieving prior price setting and subsequent trading of raw milk so that there will be reasonable profit space for dairy farms.