Chinese consumers can expect higher dairy prices in December because of a shrinking supply of raw milk from the country’s fragmented milk farms. Most domestic dairy companies put up prices last week, ranging from five to 20 percent. This was mainly in the low-end milk market. Milk profits are usually thin and are sensitive to price volatility. The price of premium products and milk powders are largely unaffected as high profit margins are able to absorb rising costs…Full article: The Global Times Dec 2013

Key point

  • In November 2013, Chinese raw milk prices stood at CNY 3.96 (US$0.65) per kg, an increase of 18.9% from the year prior

ChinaAg Comment

  • Cow milk production takes place in northern China, with Inner Mongolia region producing 9 million MTs (25% of China’s output) and Heilongjiang producing 5.4 million MTs in 2011

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