About the price of milk in China

In Australia we lament about markets lost, we scratch our heads about why we have become uncompetitive in globally in producing milk, and we try to cling on to the hype that went into the short term spike in demand in China and how everyone chased the Golden Egg and how we hope it will come back. But the reality is that it was all a false economy that sucked in a lot of new money whilst China built out their own supply to plug this demand gap. I spent a lot of time advising that this would happen and how we need to keep a balance of risks in our markets and don’t throw all our eggs in one basket. And I was also cautious about how much farm and cow IP and infrastructure we sold off for short term gain. Now those that chased this short term gain are so perplexed about how China became such a strong and fast growing competitive milk supplier. In conclusion all I can say is well done China. A country that respects the importance of food security, and backs it by providing the infrastructure and policy to enable investment and growth for the long term! A lot of lessons to be learnt here.



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