Mainly feed prices rose significantly, coupled with transportation, energy consumption and other links in the industry chain costs have seen a relatively large increase, increasing the cost pressure on dairy producers. In fact, this is not the first time in this year's dairy products prices, before and after New Year's Day, some dairy products prices have gone up a round. Nanjing's dairy products due to the surrounding areas with sufficient supply of raw materials, while the local demand is relatively fixed, so it is not considered to have risen badly. Nationwide, Shenyang has risen by more than 15%, and areas such as Beijing and Hangzhou have risen by about 10%. The reason for the retail milk price hike is the rise in raw milk, following a drought in New Zealand, which led to a reduction in milk production and a climb in the price of imported milk powder. Domestic milk powder purchase price also climbed, from the lowest 18,000 yuan per ton climbed to 36,000 yuan. Rising milk powder prices in turn drove up the purchase price of fresh milk. Secondly, the melamine incident dampened the enthusiasm of dairy farmers, many places slaughtered a number of cows, however, with the gradual recovery of milk demand, raw milk is in short supply, farmers naturally want to raise the price of milk to make up for the previous loss.

Dairy farmers have limited earnings

Dairy farmers in this wave of price increases, but did not get a lot of benefits. Nanjing around a dairy farmer calculated such a fine account: each cow per year to eat 2,000 yuan grass, 4,000 yuan soybean meal and bran and other concentrates, plus 1,500 yuan of labor costs, as well as 900 yuan of vaccination medicine, breeding, rent, water and electricity costs, a cow a year of feeding costs is 8,400 yuan to 9,500 yuan or so, and a cow a year the maximum milk production of about 4,000 kilograms, by the The purchase price can only be sold to about 8,000 yuan to 10,000 yuan. In this way, dairy farmers feeding cows are actually struggling with the balance between losing money and making money. Dairy companies generally did not raise the purchase price significantly, some of the dairy companies are long-term contracts, the price is not as fast as the retail price changes, so dairy farmers did not share much from the retail price increases. And some securities analysts believe that the increase in milk prices, will benefit some listed dairy enterprises.