Insiders: Problems in dairy sector still exist

Despite a year of consolidation in the dairy sector, insiders say problems of unbalanced industrial structure and over-capacity have not been completely solved.

The warming-up of the dairy industry, increasing demand for raw milk, and a traditional low season for production have triggered supply shortages in the market. Some major milk output areas have started, once again, to scramble for raw milk sources.

Industry insiders say the price fluctuations of raw milk will affect the sound development of the dairy industry and also cause disorder in competition. Therefore, they suggest establishing a coordination mechanism for the purchase price of raw milk. Such a mechanism should include representatives from government departments, industrial associations, dairy processing companies, and farmers.

Insiders also caution against over-capacity due to recent increases in investment, from both home and abroad, in the sector.