The quality of raw milk and dairy products in China is increasing, but the domestic dairy industry still faces challenges, an expert said at a forum held in Beijing on Thursday.
Li Shengli, director of the Sino-Dutch Dairy Development Center, said consolidation in the dairy sector was increasing, with the ratio of scaled dairy farms (those with more than 100 cattle) having reached 50 percent. The total number of dairy cattle is relatively stable, Li said, but there is a shortage of resources, such as feed.
The cost of raw milk production has decreased, but is still higher than in developed countries, he said, and seasonal conflicts in supply and demand and a lack of innovation are problems that are hard to overcome.
There is a shortage of skilled industrial workers and qualified technicians, and domestic processing and consumption of high-added-value dairy products such as cheese and butter are low.