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Food Price Hikes Hit China Dairy Farmers
CHINA - Price increases in international farm produce have impacted China's underdeveloped dairy industry. Experts and industry representatives at a dairy forum in Beijing have called for stronger government support and a more effective method of milk production.China's dairy farmers have experienced a serious setback over the past two years. Price increases in global farm produce have resulted in higher costs of cattle feed. This has seriously hit the earnings of dairy farmers.
* "At present, the relationship between dairy companies and farmers is basically just about buying and selling." |
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Prof. Kong Xiangzhi, Remin Univ. of China.
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Since last September, China has implemented policies to support dairy farmers...including expanded fund-raising channels and cash subsidies. And industry experts say the situation is already improving.
Liu Chengguo, President of Dairy Assoc. of China, said, "Dairy farmers have stopped slaughtering and selling their cows. Such cases took place in some places during the most difficult time. Meanwhile, milk prices are increasing, which has made farmers more interested in raising cows."
But experts warn costs for cattle-raising will remain high...due to higher costs of land and labor, as well as the continued increase in international food prices. The experts say dairy producing companies must cooperate more closely with cattle-farmers.
Prof. Kong Xiangzhi, Remin Univ. of China, said, "At present, the relationship between dairy companies and farmers is basically just about buying and selling. The two sides should cooperate more closely and create a demand-based production model. Otherwise, it will be difficult for them to cut costs."
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Source: CCTV
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