China Facts: The dairy industry is modernizing slowly

Ten years ago, the average dairy farm in China had three cows. The Melamine scandal that year proved to be an eye-opener for Beijing. Still today though, China has about 200 million farms and more than 90% of them are less than a hectare. Although average wages in China remain much lower than in the US, it is cheaper to produce pork in the US due to industrialised farming and cheaper feed. Chinese dairy farms with more than 1,000 cattle have increased from 10% to 19% between 2009-2018 with the top of town being driven by large corporates/SOEs'. China is increasingly adopting new technology in its rural sector like e.g. Meicai, a B2B app which helps farmers sell their vegatables to restaurants. The little-known app founded in just 2014 is now valued at $7bn which for comparison is almost five times what Geely Auto paid for Volvo eight years ago! *) 


*) the weekly skinny 17th October 2018











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Hans Henrik Pontoppidan
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The views expressed of the authors do not necessarily represent or reflect the views of DCBF.