According to the data from Ministry of Agriculture, the price of raw fresh milk keeps falling. The price was 3.67 yuan per kg in January's first week of 2015, down 12.4%. Some dairy processing companies limit or stop purchasing raw milk. And it becomes different to sell diary products in some cities.
The price of overseas milk powder keeps falling and the amount keeps increasing. The CIF of imported milk powder is 10000 yuan cheaper than domestic milk powder from last year. Dairy processing has started to use imported milk powder as material and it reduces the consumption of domestic raw milk. From January to November in 2014, China imported 884000 tons milk powder, increasing 20.2% on year. In the first half of 2014, China produced 5.2 more raw milk. Both lead to relatively surplus of milk source.
Recently, low rate dairy products consumer market has become an important reason that troubles the dairy dustry in China. China's total dairy products output in January to November of 2014 was 21.988 million tons, down 0.04%. The poor consumption and low growth are the main reason for a low development.
