Drink More New Zealand Milk

The average production price of milk in the main dairy-producing areas in northern China has risen 14.3% from last October to US$0.16 per kilogram, Shanghai Securities News reported (in Chinese). The main causes of the increase are the price of feed grains such as corn, higher milk transportation costs and a short supply of cattle due to the rising breeding costs. Retail prices from China's main dairies have diverged, as Sanyuan has raised the price of its fresh milk 10%, while competitors Mengniu and Yili have so far left their prices unchanged. However, Mengniu and Yili will have to raise retail prices sooner or later to cover costs, which have increased three times this year, said an analyst cited by the newspaper.

I don't really care too much. It's still cheap.

But I spoke with two gentlemen, both of whom at one time or another were senior in Danone Group's disasterous JV. Both of whom now work for much larger MNCs. Both independently confirmed that the last thing you want to put into your mouth in China is milk. I would have said bugs or mice, but apparently the cows are loaded with so much penicillin that the drug will be completely useless in China before too long. This is part of the fear of the "super bug" in China.

One of the two also told of a confirmed case of hoof and mouth disease at a large milk factory next to Danone Group's. He said the decision was made not to alert the public and to distribute the milk despite the confirmed tests. One of their major clients was a local elementary school. These gentlemen are the chief execs for the Asian operations of the MNCs. I have no reason to doubt their sincerity.

I just wish they'd told me that 2 years ago. I down a tremendous amount of milk in China, almost all of it Chinese.