echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Active Ingredient News > Feed Industry News > "Milk is cheaper than water"

    "Milk is cheaper than water"

    • Last Update: 2008-11-03
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com
    Introduction: dairy market "milk is cheaper than water" nowadays, the price war of dairy market is increasingly fierce In Jinan, a box of 227 grams of wheat flavored milk costs only 0.95 yuan, and a bag of 500 grams of pure milk dropped from 3.1 yuan to 1.9 yuan The price of milk has reached a point where it is cheaper than bottled mineral water In the "RT Mart" and "Carrefour" supermarkets, the reporter observed that the dairy sales area of each supermarket is a sound drop, "Mengniu", "Yili", "Guangming" and other domestic dairy giants, have taken actions since the middle of October, some of them have directly reduced their prices, some of them have adopted the gift of "buy 6 get 1" or even "buy 2 get 1" Industry insiders said that the large-scale price reduction of many dairy enterprises is the first time in Jinan It is understood that now a box of 250 ml of pure milk packaging costs more than 40 yuan, the purchase price of raw milk is nearly 40 yuan, a box of more than 9 yuan is close to the cost price In contrast to the price of milk, the price of bottled water is not cheap In Carrefour supermarket, the price of Yiyun mineral water in 330ml is 6.70 yuan / bottle, and that of quchen distilled water in 400ml is 2.20 yuan / bottle; the price of Laoshan white snake (salty) mineral water in 330ml is 3.45 yuan / bottle, which is more expensive than that of Mengniu, Yili and other brands of the same volume "Selling cattle at a low price" leads to a big drop in the price of the cows "It's better to deal with the cows if you can't sell the fresh milk with white flowers." A few days ago, Wang Laohan of gaoguanzhai Town, Zhangqiu City, sold three cows that had been raised for a year to a farm in Zibo with half of the purchase price He could not help but burst into tears It is reported that due to the surplus of milk sources and low prices, many dairy farmers like Wang Laohan in Shandong Province began to sell their cows in frustration recently The phenomenon of "selling cows at a low price" is frequently staged in Shandong's dairy farming counties The cows once regarded as the sweet pastry are now hot potato Gaoguanzhai is one of the earliest towns in Zhangqiu City, which is known as the first town in Shandong Province because of the large number of cows in stock Over the past few years, local dairy farmers have benefited greatly, and the recent downturn in the dairy industry has also affected here Mr Zhang told reporters that the purchase price of fresh milk is currently 1.85 yuan / kg, which is not a big profit for individual farmers Because the price of fresh milk can not be sold, the current price of dairy cows is almost half lower than that of previous years, and the number of farmers is also greatly reduced From June this year to now, their fresh milk supply has dropped from more than 110 tons a day to more than 90 tons In recent years, several domestic dairy giants have raced around for milk resources Why does Shandong, as the largest province with the largest cow stock, still have the event of "selling cattle at a low price"? The reporter learned that affected by the incident of poor quality milk powder in Fuyang, Anhui Province, the demand of milk powder market shrank on a large scale, the product backlog of enterprises and the rapid decline of fresh milk digestion were the direct causes of the incident Since July, the dairy industry has suddenly entered a low ebb: the purchase of fresh milk by dairy enterprises has begun to appear the phenomenon of "grading and price reduction"; the interest of dairy farmers has declined, and the phenomenon of "milk selling at a low price" has appeared in some places; the price of dairy cows has dropped sharply, but the price of feed grain has gone up all the way What is the hidden danger left by the "hot cow breeding" that makes milk cheaper than water? Industry insiders believe that it is the "cow breeding fever" that leaves hidden dangers At present, many cows have entered the period of high-yield milk In the first half of this year, the output of milk sources in China has increased by 30% - 35%, while the sales volume of finished milk in the market has only increased by 10% - 15%, with a balance between production and sales of about 20% In order to maintain the market share or sprint the sales task in the second half of the year, the enterprise will digest the excess milk production by way of price reduction, thus aggravating the contradiction between supply and demand, and fighting a cruel price war The consumption of dairy products in Shandong Province is far below the expectation of people with insight Under the situation of shortage of milk source, some dairy enterprises compete for milk source Once there are fluctuations in feed price and sales price of finished milk, the whole market begins to be turbulent For the decline of cow price, the industry insiders believe that in the past few years, Zibo, Dezhou, Heze and other places in Shandong Province have vigorously developed cow breeding, resulting in excessive local stock of cows; some farmers are eager to get rich, blindly follow the trend, completely unaware of cow breeding technology and business risks, making cow prices rise all the way, and some local cow prices even reach every About the first 20000 yuan The surplus of milk has become a big problem that the whole industry must face Like many industries, the once lucrative dairy farming industry also has to face the embarrassment of "going up and down together" According to the data from the animal husbandry office of Shandong Province, since this year, the feed price of Zibo City has increased by about 20 yuan per jin of concentrate compared with that of last year Take raising cows with an annual output of 5 tons of milk as an example, the annual feeding benefit of each cow has been reduced by 760 yuan In addition, the labor, treatment, rent and electricity fees have increased to varying degrees However, the price of milk has not increased but decreased, and fresh milk has been collected The purchase price is 0.06-0.10 yuan less than last year's per kilogram, so the average annual income of each cow is reduced by about 500 yuan Plus the impact of poor milk powder incident, the whole industry is even worse The decline in the price of fresh milk and dairy cows is also considered as a normal phenomenon after huge profits At present, the value and price of dairy cattle tend to be the same, which is a timely adjustment opportunity to avoid blind development of dairy industry.
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.