De­mand for milk in China out­strips sup­ply

DEMM Engineering & Manufacturing - - FOOD -

China’s de­mand for dairy im­ports is set to grow for at least the next two years, as its lo­cal milk pro­duc­tion strug­gles un­der struc­tural change in the sup­ply chain, an in­dus­try re­port has found.

In the re­port, ‘China’s Raw Milk Sup­ply: Still Dream­ing of a White River’, in­ter­na­tional food and agribusi­ness bank­ing specialist Rabobank says China is ex­pected to be one of the key driv­ers of global dairy con­sump­tion growth over the next decade.

Re­port co-au­thor, Rabobank di­rec­tor of dairy re­search New Zealand & Asia Hay­ley Moyni­han, says China’s milk sup­ply chain is rapidly chang­ing, with the de­vel­op­ment of large-scale dairy farms ac­cel­er­at­ing since 2008, in the wake of the ‘melamine cri­sis’.

At the same time, ‘back­yard’ dairy farm­ing has de­clined, pri­mar­ily due to in­con­sis­tent milk qual­ity and reg­u­la­tory pres­sures.

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