Australian Dairies looking to sell milk in China

Australian Dairies looking to sell milk in ChinaRepresentatives of dairy operators in Australia are looking to sell their fresh milk directly to the Chinese markets in order to generate more revenues.

Leaders from the industry have held talks with the state government of New South Wales and Chinese supermarkets for making their fresh milk directly available in Chinese cities including Shanghai, Beijing and Hong Kong in order to take advantage of higher prices.

Industry experts have said that the move could result in a fall in supply and the prices of milk could increase in Australia. The President of the Milk Producers’ Organisation of SA said that farmers are facing pressure due to higher prices of gains and thus supply could fall, increasing the price of the milk and other products.

The prices of grains have risen and farmers are forced to feed less to the cattle resulting in low productivity of milk. “It is not an exact science, [but] as long as the price of grain remains where it is, there will be pressure on supply. Based on the current grain price related to the milk price, we will be put under strain,” he said.