Chinese dairy farmers are taking a hit as the price for raw milk keeps diving.
Dairy farmers from a number of Chinese regions have been forced to discard milk or use it to feed other livestock after major dairy firms refused to take it.
Dairy farmers in Hebei, Qinghai, Shandong and Guangdong provinces say raw milk is now selling at below 3 yuan a kilogram.
The price has declined steadily since February last year, from about 5 yuan to 3.5 yuan per kilogram on average.
Some dairy farmers have abandoned their businesses. Meantime, some dairy companies continue to import fresh milk supplies.
An industry report shows Chinese dairy firms imported some 280,000 tons of raw milk last year, while imports of powdered formula totaled 1 million ton.
For more on the issue, we are now joined live by Ben Cavender, Principal at China Market Research.
