CPPCC members appeal for greater support for dairy industry's healthy development

(chinadaily.com.cn)

Updated: 2015-03-11

They proposed that the State continue to support the construction of large-scale standardized cow farms.

National Committee members of the CPPCC from Inner Mongolia suggest that the State give greater support to the construction of large-scale standardized cow farms and make the subsidy more extensively available by supporting Inner Mongolia to implement the transformation and upgrading of 1,000 cow farms and the transformation of 1,400 cow farms with 100-300 cows on an annual basis and three years in a row, thus making cow farming a scale-based business.

The proposal proposed a policy of subsidizing the cost of raw milk.

For the sake of protecting the interests of dairy farmers and ensuring the healthy and sustainable development of the milk cow farming sector, the country should subsidize dairy farmers when the domestic production cost of raw milk per kilogram is 1 yuan higher than that of overseas raw milk, and the subsidy should be 20 percent of the production cost gap.

It is proposed that the State strengthen price management over dairy products.

First, the system of minimum protection price of raw milk should be established. When the market price is higher than the minimum protection price, enterprises should purchase at the market price; when the market price is lower than the minimum protection price, enterprises should purchase at the minimum protection price. Second, the policy-based price insurance mechanism should be established. Premiums should be jointly and proportionally covered by the government and the cow farms, with the latter participating on a voluntary basis. Third, the risk fund for the dairy industry should be established. Fundraising will be jointly done by cow-keeping households, dairy producers, forage grass dealers and the State, with each contributing a different percentage. The fund will be mainly used to subsidize any participating cow farmer for the accidental death or slaughtering of diseased milk cows. - It is proposed that the State support the construction of forage grass bases in Inner Mongolia.

At present, the shortage of high-quality forage grass is one contributing factor of the high production cost of raw milk in China. According to statistics, 12 percent of the material cost of a milk cow can be attributed to clover. The demand for clover in China in 2014 was 2.3 million metric tons, nearly 40 percent of which needed to be imported.

It is proposed that the State establish a milk powder purchase and storage long-term system.

Given the fact that raw milk supply varies noticeably from the dull season to the boom season, it is hoped that the State can establish the long-term system of milk powder purchase and storage. The quantity of storage will be adjusted on a dynamic basis in line with the market situation, and the enterprises will be given subsidies on an annual basis and on a per-ton basis for their storage efforts.

Edited by Michael Thai

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