China’s dairy sector,which was valued at USD 40.6 billion in 2013, is currently experiencing oversupply to such an extent that farmers are pouring milk down the drain and slaughtering cattle. The sector is also suffering on account of the global fall in milk prices and the quality issues in domestic milk production.
Locals who can afford it prefer to consume only foreign brands of milk and milk products and this is causing a decrease in demand.
China’s cow milk production grew at a fast rate from 2000-2007 but dropped sharply in 2008 due to the melamine scandal where a chemical was added to milk to artificially increase the protein content. Since 2008 milk production in China has been increasing at a moderate rate.
Source: Whatech
