Inside Milk
China aims to start up 200 dairy farms
China is investing heavily in the development of its own dairy farming. Many dairy farms have expanded considerably during this corona crisis and 200 companies are being started up. China craves more domestic milk.
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This is reported by Reuters. China is setting up more than 200 dairy farms, according to the Beijing Orient Dairy Cunsultancy. Around 60% of the construction plans are for a farm size of more than 10.000 dairy cows. In total, the construction plans are good for a total of 2,5 million cows. This is about half of the current livestock population in China.
China still faces a major challenge in becoming self-sufficient. Self-sufficiency in China is around 70%. In addition, feed costs are at record levels. Consumption in China is relatively low compared to consumption in India, the European Union and the United States.
Difference in consumption
For example, India consumes 200 million tons of milk per year. In China this is a lot lower with consumption of around 40 million tons of milk. The populations of both countries are comparable, which indicates that people in India drink 5x more dairy than in China. However, consumption in China is growing rapidly.
The current shortage of dairy cows could cause a peak in the import of dairy products. Australia and New Zealand in particular can benefit from this, but it can also be positive for the global dairy market.