China’s milk demand peaks • Farm Policy News

By on June 6, 2021 0

At the end of last week, Reuters writer Dominique Patton reported that, “China thirsts for milk. The ever-growing demand has sharp further after doctors touted its health benefits amid the coronavirus pandemic and dairy companies across the country have has embarked on a farm building frenzy.

Gavin Maguire- Asia Commodities & Energy Editor-in-charge for Reuters. Twitter post – (June 3, 2021).

But quenching that thirst will be problematicnot least because it will be difficult to find the millions of additional cows needed for the planned new and expanded farms.

China is the world’s third largest producer of milkr, but last year’s 34 million tonnes of production only reached about 70% domestic needs. Complicated things are feed costs at multi-year highs, while land and water are also scarce, making the country a expensive place produce milk.

Ms Patton explained that, “Driven by near record highs for raw milk prices and government subsidies, just over 200 new Chinese dairy farm projects have been announced last year, according to consulting firm Beijing Orient Dairy.

“Its analysis shows that 60% of new projects have set their sights on More than 10,000 cows and in total, the plans require a few 2.5 million cows – about half of China’s current dairy herd – to be added in the coming years.

The Reuters article noted that, “Food costs, however, present another hurdle, analysts and industry sources say, as imported heifers take time before they become dairy cows.

Also last week, Reuters writer Karl Plume reported that,

China’s feed grain industry is unlikely to become self-sufficient despite the country’s efforts to increase domestic production, David MacLennan, managing director of Cargill Inc.

“The tight domestic supply of feed grains and soaring demand from Chinese pork producers have triggered record feed grain import purchases this year. “

The Reuters article said, “’I think they’re realizing a comparative advantage… Grow and produce what suits your climate, your natural resources, your soil, your water supply. They don’t have it like us Brazil Australia do‘MacLennan said at the National Grain and Feed Association’s annual convention on Friday.

“‘They must depend on trade,’ he added.”

Meanwhile, Reuters News reported last week that “China on Thursday welcomed the resumption of “normal discussions” with the United States on the Trade and the economic fronts, apparently keen to move beyond a trade war, as he said both sides aim to solve problems pragmatically.

“The Chinese Vice Premier Liu He, who led trade talks with the United States, held two video calls with the United States Trade Representative Katherine tai and Secretary of the Treasury Janet Yellen in a week, marking the first formal engagement between the two sides on trade and economic issues under the Biden administration. “

The Reuters article pointed out that “Chinese state media have also focused on the your positive economic talks that followed icy exchanges between senior Chinese and US foreign policy officials at a meeting in Alaska in March.

“The exchanges last week” sparked optimism about improving communication between the world’s two largest economies, “Chinese state tabloid Global Times reported.”

And Bloomberg News reported on Wednesday that ‘President Xi Jinping urged Chinese authorities to create a’trustworthy, kind and respectable image for the country, a sign that Beijing may be looking to smooth his sharp diplomatic approach.

Xi told senior Communist Party leaders on Monday that the country should ‘make many friends, unite the majority and continually expand its circle of friends with those who understand and are friendly with China,’ the agency said. Xinhua official press. Beijing needed to “hold the tone” in its communication with the world and should “be open and confident, but also modest and humble”.

“It remains to be seen whether the push will impact China’s policies in disputes with countries like the United States, Australia or the European Union, which have all seen their relations deteriorate further in recent months. “the Bloomberg article said.

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