Chinese dairy sector December 16, 2013 12:00 am Reports suggest that as many as 2 million cows have been lost from the Chinese dairy herd causing Chinese milk production to drop by up to 20% this year. The fall in cow numbers, now standing at around 6 million, has apparrently been caused by drought, high feed costs and disease. Chinese demand for milk and dairy products remains high, at around 40 million tonnes per year and with production at 35 million tonnes imports are increasing. With demand for milk staying high the global markets look set to remain strong. If these reports are correct, then this is extremely bullish news for global milk prices.
