China's big dairy companies are suffering losses

Published 2024년 8월 17일

Tridge summary

China's dairy sector is grappling with challenges such as low product demand, high competition, rising costs, and oversupply, as highlighted by loss-making companies Manor Ranch, Tianrun Dairy, and AustAsia Group. The Ministry of Agriculture and Rural Affairs has reported a decrease in the monthly average price of raw milk for 27 consecutive months, reaching 3.30 yuan/kg in June 2024, down by 0.53% from the previous month and 13.55% year-on-year. This has led to a reduction in milk production capacity by 150,000 cows, resulting in a decrease in raw milk production by nearly 4,500 tons per day. Analysts predict that the balance of raw milk supply and demand may be achieved by 2025.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

According to DairyNews, this shows the current difficulties facing the dairy sector in China. Meanwhile, loss-making companies (Manor Ranch, Tianrun Dairy, AustAsia Group) attribute this to low demand for products, high competition, rising costs and oversupply. According to the Ministry of Agriculture and Rural Affairs of the People's Republic of China, the monthly average price of raw milk in June 2024 was 3.30 yuan/kg, down 0.53% from the previous month and down 13.55% year-on-year. The ministry explained that the domestic supply of raw milk remains excessive. Raw milk purchase prices have declined year-over-year for 27 consecutive months, the longest period of decline since 2010. As a result, agricultural enterprises engaged in the production of milk implemented plans to ...

Source: AgroPortal.ua