China: Estimation of dairy farming costs and benefits in Shandong Province in the first quarter of 2024

Cow Milk
Market & Price Trends
Published Apr 17, 2024

Tridge summary

The dairy industry in China is currently facing a challenging period marked by falling milk prices, increasing production costs, and a surplus of milk due to weak consumer demand, leading to widespread losses among dairy farmers. Despite a decrease in feed grain prices, the industry struggles with balancing supply and demand, exacerbated by a significant year-on-year increase in raw milk production. However, there are signs of potential relief with expected reductions in production costs and an improving milk-to-grain price ratio. The industry is also witnessing a shift in consumer preferences towards upgraded nutrition, including a growing interest in table cheese and low-temperature dairy products. This diversification in consumer demand, coupled with structural optimizations and the development of the big health industry, presents a hopeful outlook for the dairy sector's recovery and long-term growth.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In the first quarter, dairy cows: milk prices continued to fall and hit a new low, and breeding continued to lose money. The daily feeding cost of dairy cows (average daily output of 27 kg) is converted to an average cost of 3.65 yuan per kilogram of milk, and the comprehensive cost of the whole herd is 4.00 yuan/kg. In the first quarter, the average loss of the whole herd was 899 yuan per head, and the daily output of 30 kg was at the break-even line. Dairy cows: milk prices hit a new low, and breeding continued to lose money (I) Cost accounting: 2. Multiparous cows: Currently, multiparous cows are calculated based on the price of beef cattle. The price of zero-culled live cows is 15 yuan/kg, weighing 680 kg, and the selling price is 10,200 yuan; the price of large-scale culled live cows is 16-18 yuan/kg, weighing 680 kg, and the selling price is 10,880-12,240 yuan/head. Daily feeding cost of adult cows (converted per kilogram of raw milk): Calculated based on the average daily ...
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