Q4 Reference Price for Raw Milk in Hebei Is 3.97 Yuan/kg, Slightly Lower Than Q3

Hebei Province sets Q4 reference price for raw milk trading at 3.97 yuan/kg, up by 3.1% year on year; minimum price limit is 3.7 yuan/kg, up by 2.2% year on year.
It is noteworthy that Q3 reference price for raw milk trading in Hebei is 4 yuan/kg, whereas Q4 reference price is slightly lower than Q3. According to our analysis, the main reasons include:
(1) This price level is enough to ensure reasonable profit room for dairy farms.
(2) Backed by the supply-demand relationship of raw milk trade, quality price for quality goods, etc., the actual raw milk price exceeds 4 yuan/kg. Under such circumstances, slight downward readjustment of the raw milk trading reference price will facilitate the guidance of price expectancy and avoidance of excessive price surge.