Restructuring can help domestic dairy industry

(China Daily)

Updated: 2015-01-09

AS GLOBAL DAIRY PRODUCT prices fall, dairy farmers in the greater Beijing region are finding it hard to sell their products; reports show they discard tons of milk every day. Comments:

Individual dairy farmers in and near Beijing have to depend on unstable orders from dairy enterprises; as global dairy prices are falling, they might face trouble as the enterprises turn to imported products. It is advisable for dairy farmers to establish more stable cooperation mechanisms with dairy enterprises so as to reduce the risks.

fawan.com, Jan 7

Some local governments in Hebei province and the Inner Mongolia autonomous region used to "encourage" or even compel farmers to buy milk cows, because officials could boast of them as development achievements and also get subsidies from the higher authorities. Such absurdity must be curbed so that farmers no longer suffer from officials' foolishness.

Beijing News, Jan 8

If the current challenge to the domestic dairy industry remains unanswered, small-and medium-sized dairy enterprises might collapse one after another, thus triggering a major crisis that involves more industries rather than one. The authorities should not intervene in the market at will, but in the case of dairy foods security they need to help with technology innovation and industry upgrading.

cnhubei.com, Jan 8

Dairy product prices in China are actually quite high compared with those overseas, which has seriously restricted the development of the industry. It is time for the dairy enterprises to adopt a new strategy that does not rely so heavily on high prices.

Song Kungang, honorary director of the China Dairy Industry Association, Jan 8

(China Daily 01/09/2015 page8)

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