Milk shortage in China forces dairy companies to hike prices

Milk shortage in China forces dairy companies to hike prices

183
0
SHARE

In recent times, China has been dealing with a shortage of dairy products. The shortage is caused by a lack of dairy cattle. Due to the current situation, many dairy companies in the country are thinking of increasing their prices.

milk shortage

These days, it is hard for customers to find milk in the grocery stores in northern China and even more difficult to find milk in the country’s supermarkets. Guo Hongyan, the director of Guoda Supermarkets said, “Pure milk, especially low-end milk products are in short supply about one-third less than the same period last year”. The dairy farms in China are the biggest problem in this situation.

It has been noticed that keeping cattle is becoming increasingly expensive, due to the rising costs of feed and maintenance. A number of dairy farmers are slaughtering cattle and the main dairy producing areas have witnessed 10 to 20% fall in the number of cattle. A dairy farm owner said that the output in 2012 was four tonnes and a half, while in 2013 it might only be two and a half tonnes, which is two tonnes less.

Due to the rising crisis of milk in the country, the dairy companies are looking to increase their prices. This is a good opportunity for the international milk brands, as they see domestic companies losing the low-price advantage.

Photo Credits: ChinaAbout