Big dairy farms to supply most raw milk
Print Edition
Large-scale dairy farms will in future contribute the most to China’s raw milk supply, which is expected to be stable this year, as small-scale dairy farms are gradually phased out.
However, it would take at least two to three years before the large dairy farms will be able to fully meet domestic demand, given rapid market growth and a relatively low per capita consumption of dairy products compared with developed nations, Rabobank International said in a report yesterday.
Imported raw milk is set to contribute 17-18 percent of the total supply in China this year, higher than the 15 percent in 2013, the report suggested.
“Rising income of lower-tier city residents and the urbanization process will drive growth of dairy demand into the next decade,” said Sandy Chen, director of food and agribusiness research and advisory at Rabobank Shanghai.
The average price of domestic raw milk soared 21 percent last year due to fluctuation in the global supply and strong domestic demand.
This year, the raw milk price may rise 3-5 percent and more dairy product makers seek long-term deals with suppliers to control cost.
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