China Dairy Monthly Report

During the month,  main milk producing provinces and autonomous regions in China stepped up the transition of raw milk production to scaled,  intensive,  quality and efficiency production. The national raw milk supply was insufficient due to the growing consumption demand and the demand from the powder processing industry,  raw milk prices kept on moving up in the main producing regions,  and lots of places saw historical records of milk price. Various places actively explore new dairy farming modes for the sake of improving farming efficiency. Various places paced up the promulgation and implementation of new dairy development policies for the sake of constant and healthy development of the local dairy industry. Both liquid milk and solid dairy products production sustained a rapid growth in November. According to the estimate of BOABC,  the national liquid milk production in 2009 could be 12% more from 2008 and the production of solid dairy products could be 95% of the level in 2008. A number of supporting policies were promulgated after the melamine incident,  and the improvement of the quality of raw milk and dairy products and the rapid resumption of the confidence of consumers led to the faster recovery of the dairy industry than the previous forecast. Owing to the price hike of raw milk,  processing companies considered to raise product price. From November to December,  the price of large-pack full-cream powder rose to 24, 000-25, 000 yuan/ton,  of which the industrial powder from famous companies was as high as 27, 000-29, 000 yuan/ton. In November,  there was a substantial growth of import of dairy products,  and the importation price rose slightly,  whereas the export of dairy products during the same period was still sluggish.