China’s Fertility Incentives: A New Boost for the Dairy Industry?
Source: dairynews.today
China’s recent push to encourage births is fueling expectations in the global dairy market. Could these policies drive long-term dairy consumption growth?
The government’s latest fertility incentives, offering subsidies of up to $13,800 per child in some provinces, aim to curb population aging and stimulate consumer demand.
Markets have already reacted. Shares of infant formula companies such as Feihe and Beingmate surged as much as 10% in the days following the announcement, according to Bloomberg.
Historically, rising birth rates have driven dairy demand, fr om infant formula to fresh dairy products. However, analysts caution that factors such as high living costs and social barriers may lim it the impact of subsidies.
Japan’s experience highlights these challenges. Despite offering financial incentives since the 1990s, the country’s birth rate has continued to decline, falling to 1.26 children per woman in 2022, according to the Ministry of Health.
While past trends show mixed results, the dairy industry is closely monitoring developments in China, South Korea, and Japan. In some cases, financial incentives have provided temporary boosts in birth rates, though long-term demographic trends remain difficult to reverse.
Markets have already reacted. Shares of infant formula companies such as Feihe and Beingmate surged as much as 10% in the days following the announcement, according to Bloomberg.
Historically, rising birth rates have driven dairy demand, fr om infant formula to fresh dairy products. However, analysts caution that factors such as high living costs and social barriers may lim it the impact of subsidies.
Japan’s experience highlights these challenges. Despite offering financial incentives since the 1990s, the country’s birth rate has continued to decline, falling to 1.26 children per woman in 2022, according to the Ministry of Health.
While past trends show mixed results, the dairy industry is closely monitoring developments in China, South Korea, and Japan. In some cases, financial incentives have provided temporary boosts in birth rates, though long-term demographic trends remain difficult to reverse.
