According to the data, China’s overall dairy production costs are rising at a record rate, with the +10.7% increase posted in September heavily influenced by the price of coal and wider global supply chain problems.
With China the source of nearly 42% of all shipping containers coming to the US, these inflated figures are making the case for offshoring operations to China harder to justify at the present time and that is likely to impact upon consumer spending power in the medium to longer-term.
At the same time, Chinese players are continuing to make international plays, writes Richard Field, editor of Dairy Products China News.
“The September announcement that H&H was raising its stake in France’s Isigny-Sainte-Mère from 20% to 49.9% seems a good example of this in practice, and our analysis of the New Zealand dairy industry shows that Chinese investments in milk processing there now account for about 10% of milk production nationally,” he adds. “Such cooperation offers opportunities for China and for foreign partners, but creates concern for producers in such strong dairy sectors at the same time.”
Exclusive Chinese dairy market analysis in this issue:
- A Challenge to China's Future Whey Permeate Demand
- Dairy Feed Situation
- Changes in Administrative Regulations on the Registration of Overseas Producer of Imported Food
- China Dairy Industry & the "14th Five-Year Plan"
- Draft of Administrative Measures on FSMP (Revision) Issued
- China Zhongdi's Smart Dairy Farm Starts Milking
- Qianjin Animal Husbandry Builds New Dairy Farm
- Ausnutria Suspends Trading Whilst Under Offer
- Bright Dairy Bids for Xiaoxiniu
- Dairy Farming Costs Escalating
- News in Brief: Dairy Imports in September 2021
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