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although the second half of the year is the peak season for milk sales, the sluggish raw milk price has fallen again. a reporter from china business news recently learned from a recent visit that some ranchers said that due to insufficient demand from dairy companies, the current contract milk price has fallen below 3 yuan/kg. the latest financial report released by fonterra, a major international dairy raw material player, on september 25 also showed that the revenue from the raw material business in the chinese market fell sharply during the period. from the perspective of the industry, the current raw milk production capacity reduction effect is not as expected. the second half of the year is also the peak season for raw milk production, and the contradiction between supply and demand is still not optimistic.

"the purchase price of milk is already lower than the feeding cost price." talking about the recent milk prices, xu liang, a large rancher in hebei, said helplessly that the mid-autumn festival and national day were originally the peak seasons for milk sales, but dairy companies did not increase milk collection from the pastures. prices, on the contrary, continued to fall.

xu liang told china business news that the contract milk purchase price for dairy companies in august was still more than 3 yuan/kg. in september, the contract milk price had dropped to 2.9 yuan/kg. xu liang had previously sold the young cattle in the pasture to raise lactating cows. , coupled with the recent decline in corn, soybean meal and other feed prices to varying degrees, the pasture can still barely support it.

generally speaking, in order to prepare for the holidays, dairy companies increase milk collection before the mid-autumn festival and national day, and the market milk price will also rise accordingly. however, data released by the ministry of agriculture and rural affairs in the first week of september shows that the price of raw milk has not increased this year. there has been an improvement. the average price of raw milk in 10 main producing provinces including inner mongolia and hebei is 3.14 yuan/kg, down 0.9% from the previous week and down 16.5% year-on-year.

independent dairy analyst song liang told china business news that the current price of raw milk continues to decline, mainly because the recovery of the downstream dairy consumer market is less than expected.