British milk sells to China

Milk to ChinaChinese companies have started making direct approaches to British farmers asking to buy millions of litres of milk.  China is the world’s largest consumer of milk.

Milk in Britain can sell for 90p per litre, one of the lowest prices in the world, but can retail for £3 per litre in China.

UK farmers protested as recently as last month that many struggle to pay bills and make any sort of profit from dairy farming.   The approaches from China represent a potential new outlet.

Already Britain’s largest dairy company, Dairy Crest, has invested £40m in a new infant formula facility in order to tap the Chinese market.

But now state-owned Chinese firms are trying to buy direct from British farmers.

Analysts believe that the infant formula market in China will double over the coming four years.

China has been looking elsewhere for its milk in the wake of the 2008 baby milk scandal where it was revealed that tonnes of milk were contaminated.

Germany’s exports of dairy produce to China in the first months of this year grew by 138% over 2012.

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