December 24, 2013
China's dairy cows down two million in 2012
Due to high production costs and record beef prices, a mass exodus of farmers has occurred, bringing China's dairy herd to decline by two million cows in the past year.
Dairy Australia industry analyst John Droppert says China has slaughtered more cows this year than the entire Australian dairy herd.
"But you are certainly seeing a reduction in production, I think they are talking 10-15% this year. Effectively that means at the broader level they have a bigger gap. Demand is growing and at the same time supply is shrinking," he added.
Australian dairy farmers face a tough fight on international markets to gain extra business from the Chinese dairy shortfall.
Droppert says the USA and New Zealand are both ramping up exports to the country. He said the New Zealand September export statistics came out and 40% of their product for that month went to China.
However it could be good news for exports of live Australian dairy heifers.
That market is still competitive with international competition for that business from both Uruguay and New Zealand.