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[Dairy News]MoA: Chinese Raw Milk Production Reached 16.3 Million Tons during the First Half of 2015

2015-9-2 15:48:11 Comments:0 Views:2469 category:Dairy Sector News

According to the prediction of the MoA, Chinese raw milk production reached 16.3 million tons during the first half of 2015, an increase of 3.3% compared with the same period last year.

The price of raw milk kept declining, the performance of Chinese dairy farming sector went down substantially. More and more small household farmers quit this business due to the poor profits while large scale farms are increasing their raw milk production by improving the milk performance of their milking cows.

Due to factors such as the increase of global milk production, milk product import and the weakness in consumption, price of raw milk kept declining since February of 2014, and up until the fourth week of June this year, the price went down to 3.42 yuan per kilo, a decrease of 19.9%. Influenced by the lowering price of international dairy products, the productivity of domestic-produced raw milk still needs a while to make adjustments. It is predicted that during the latter half this year price of raw milk will swing at low levels, without enough impetus to grow.

In May 2015, a milking cow with annual productivity of 6 tons of milk can only make an annual net profit of 240 RMB, a decrease of 95% compared to the last year. The substantial decline in profit led to many small farms and household farmers culling their low productivity cows or quitting this business, meanwhile middle to large scaled dairy farms cushioned the decrease in profit by improving milk productivity per capital. The Chinese dairy farming sector was speeding up in upgrading and transforming.