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"Is this another way for us to 'pour milk and kill cows'?" A few days ago, on the WeChat public account of "Hebei Dairy Association", Yuan Yunsheng, vice president and secretary general of Hebei Dairy Association, published a signed article
on this.
One stone stirred up a thousand waves, arousing strong attention
from all walks of life.
Yuan Yunsheng said that this is the most heartfelt sentence
he has heard in recent years.
Industry insiders believe that although this extreme phenomenon has not occurred, the entire industry is still concerned about the current situation, and if the situation continues, it is inevitable that extreme phenomena
will not occur.
On the 6th, the Department of Agriculture and Rural Affairs of Hebei Province also urgently issued a relief policy, issuing a 40 million yuan subsidy
for fresh milk powder spraying of dairy processing enterprises.
At the same time, solve the actual difficulties of farm households, coordinate and solve the contradictions in the purchase of fresh milk, ensure that no "milk dumping incident" occurs, and protect the interests of
dairy farmers to the greatest extent.
Reluctantly lowered the reference price of raw milk trading
On December 28, the fourth fresh milk price coordination meeting of Hebei Province in 2022 announced: it is estimated that the reference price of fresh milk trading in Hebei Province in the first quarter of 2023 is 4.
10 yuan / kg, and the minimum is not less than 3.
93 yuan / kg
.
In view of the current situation, the farm committee took the initiative to reduce the minimum price to 3.
85 yuan / kg, and the dairy company could collect all the receivables, renew the purchase contract on schedule, and compensate for the price difference after the
difficulties eased.
Yuan Yunsheng said that this is the first time in the history of the Hebei Fresh Milk Price Coordination Committee to announce the transaction reference price
with conditions.
The reduced price has no profit room for most dairy farms in Hebei Province, but it is also a helpless move
.
This is the background
of some farmers who complain bitterly, get emotional, and even say "pour milk to kill cattle".
Industry insiders said that from the perspective of the entire industry, the cost of dairy cow feeding has repeatedly increased, there is a surplus of raw milk, the price is in a downward trend, and the farm has experienced a decline in income or loss operation under the dual impact of falling purchase prices and rising costs, especially in some small and medium-sized ranches
.
It can be said that the rising cost of breeding is an important reason
.
On the one hand, the cost of feed is rising
.
Since 2022, affected by international factors, the price of corn, soybean meal, alfalfa and other feed has been rising, and even for a time there was a situation
that soybean meal was not only expensive, but also may not be bought.
According to the Ministry of Agriculture and Rural Affairs' monitoring of 500 county markets and collection points across the country, the national average corn price in the fifth week of December (the collection day is December 28) was 3.
05 yuan/kg, up 5.
5%
year-on-year.
The national average price of soybean meal was 5.
07 yuan/kg, up 34.
1%
year-on-year.
From the perspective of the international market, the cost of foreign breeding has also increased
in the past two years.
According to the International Ranch Federation (IFCN), the world feed price index was not lower than $33/100kg in 2022 and $28/100kg
in 2020.
On the other hand, under the background of the new crown epidemic prevention and control, with the rise of labor costs, epidemic prevention costs, energy costs, transportation costs and other raw material prices, the overall operating costs of domestic dairy farms have remained at a high level
.
At the same time, in the case of rising costs, the price of milk does not rise but falls
.
According to the monitoring data of the same time period, the average price of fresh milk in 10 major producing provinces such as Inner Mongolia and Hebei was 4.
12 yuan / kg, down 3.
7%
year-on-year.
The slowdown in milk consumption has also put milk processing companies under "pressure", and some companies can only "powder" the raw milk they have collected
.
According to incomplete statistics, Hebei Province sprays more than 4,000 tons of surplus fresh milk every day, occupying more than
16 million yuan of enterprise funds every day.
Urgently introduce relief policies to maintain the order of fresh milk purchase
In view of the current difficulties faced by the whole dairy industry in Hebei Province, the Department of Agriculture and Rural Affairs of Hebei Province urgently issued a relief policy on the 6th, and issued the "Urgent Notice on Maintaining the Order of Fresh Milk Purchase and Strengthening Quality and Safety Supervision" (hereinafter referred to as the "Notice"
).
The "Notice" said that at present, affected by the new crown pneumonia epidemic, the development of the dairy industry is facing unprecedented difficulties, the supply of raw milk has increased, the consumption of dairy products has decreased, the cost of breeding has risen, and milk prices have continued to decline
.
In view of the unprecedented difficulties faced by dairy processing enterprises in continuous powder spraying and a large backlog of funds, the Notice said that the 15 million yuan of powder spraying subsidy funds in 2023 will be pre-allocated to dairy processing enterprises before January 20, and the subsidy funds of 25 million yuan in 2022 will be issued at the same time to help dairy processing enterprises alleviate financial pressure
to the greatest extent.
At the same time, dairy processing enterprises are required to "collect all fresh milk in the province, renew the purchase and sales contracts in a timely manner when they expire, effectively protect the interests of dairy farmers, and stabilize the order of fresh milk purchase and sales"
.
In addition, the Department of Agriculture and Rural Affairs of Hebei Province will arrange three working groups to go to key counties in the dairy industry to solve the practical difficulties of farm households and coordinate and solve the contradictions
in the purchase of fresh milk.
The agricultural and rural departments of all cities and counties should regularly hold symposiums for farm households to ensure that no "milk dumping incident" occurs and protect the interests of
dairy farmers to the greatest extent.
For dairy farms, the Notice specifically mentions that it is necessary to establish a sense of risk awareness with dairy processing enterprises and take responsibility for surviving difficulties, strengthen communication and coordination with dairy processing enterprises, and advance and retreat, develop together, and overcome difficulties
.
It is worth noting that there is a certain amount of speculation in the dairy industry
.
When milk is in excess of demand, some farms complain.
However, when milk is in short supply, it is a different story
.
Yuan Yunsheng said that individual farms did not abide by the contract, disrupting the order
of the fresh milk market.
Specifically, there is a type of dairy farm that in the period of milk shortage and milk grabbing, in line with the principle of "maximizing their own interests", "who sells milk at a high price to whom", and even unilaterally tears up the contract and sells fresh milk at a high price to dairy vendors or dairy enterprises in other provinces during the contract period with dairy enterprises in Hebei Province
.
Now that there is more milk, the milk dealers will not collect it, and the dairy enterprises in other provinces will be the first to abandon these pastures
.
While they found factories to pay high processing fees for powdering and storing the raw milk that could not be sold, they begged people everywhere to return to dairy enterprises in Hebei Province to deliver milk
.
In China, to build a dairy farm, as long as there is land and funds, anyone can build it
.
The imbalance in the development of the industrial chain formed by relying entirely on market regulation is also very obvious
.
In recent years, the proportion of dairy enterprises' self-built pastures is getting higher and higher, and when the demand for dairy products is insufficient to reduce the use of fresh milk, priority must be given to ensuring the acquisition of self-built dairy farms, and the risk of limited and rejected fresh milk will naturally be transferred to social pastures
.
Yuan Yunsheng suggested that the construction of dairy farms should be based on reasonable planning and approval of dairy processing capacity, and when necessary, a quota system should be implemented to achieve the balance
between supply and demand of fresh milk as much as possible.
At the same time, in order to protect the interests of dairy farmers and prevent incidents such as "pouring milk and killing cows", Yuan Yunsheng suggested that dairy enterprises that have "refusal to milk, limit milk, refuse to sign contracts" and other behaviors in difficult times should be disqualified from enjoying the above support policies and notified
.
In fact, in the face of rising costs squeezing upstream profit margins, the breeding end must take multiple measures to reduce costs and increase efficiency
.
For example, broaden procurement channels, conduct direct procurement with more manufacturers, strengthen and simplify the procurement process, and reduce procurement costs; Predict the price trend of major forage in advance, expand its own concentrate base and roughage planting, and establish stable cooperation with forage suppliers to ensure that better supply is prioritized under the same conditions
.
;
;"Is this another way for us to 'pour milk and kill cows'?" A few days ago, on the WeChat public account of "Hebei Dairy Association", Yuan Yunsheng, vice president and secretary general of Hebei Dairy Association, published a signed article
on this.
One stone stirred up a thousand waves, arousing strong attention
from all walks of life.
Yuan Yunsheng said that this is the most heartfelt sentence
he has heard in recent years.
Industry insiders believe that although this extreme phenomenon has not occurred, the entire industry is still concerned about the current situation, and if the situation continues, it is inevitable that extreme phenomena
will not occur.
On the 6th, the Department of Agriculture and Rural Affairs of Hebei Province also urgently issued a relief policy, issuing a 40 million yuan subsidy
for fresh milk powder spraying of dairy processing enterprises.
At the same time, solve the actual difficulties of farm households, coordinate and solve the contradictions in the purchase of fresh milk, ensure that no "milk dumping incident" occurs, and protect the interests of
dairy farmers to the greatest extent.
Reluctantly lowered the reference price of raw milk trading
Reluctantly lowered the reference price of raw milk tradingOn December 28, the fourth fresh milk price coordination meeting of Hebei Province in 2022 announced: it is estimated that the reference price of fresh milk trading in Hebei Province in the first quarter of 2023 is 4.
10 yuan / kg, and the minimum is not less than 3.
93 yuan / kg
.
In view of the current situation, the farm committee took the initiative to reduce the minimum price to 3.
85 yuan / kg, and the dairy company could collect all the receivables, renew the purchase contract on schedule, and compensate for the price difference after the
difficulties eased.
Yuan Yunsheng said that this is the first time in the history of the Hebei Fresh Milk Price Coordination Committee to announce the transaction reference price
with conditions.
The reduced price has no profit room for most dairy farms in Hebei Province, but it is also a helpless move
.
This is the background
of some farmers who complain bitterly, get emotional, and even say "pour milk to kill cattle".
Industry insiders said that from the perspective of the entire industry, the cost of dairy cow feeding has repeatedly increased, there is a surplus of raw milk, the price is in a downward trend, and the farm has experienced a decline in income or loss operation under the dual impact of falling purchase prices and rising costs, especially in some small and medium-sized ranches
.
It can be said that the rising cost of breeding is an important reason
.
On the one hand, the cost of feed is rising
.
Since 2022, affected by international factors, the price of corn, soybean meal, alfalfa and other feed has been rising, and even for a time there was a situation
that soybean meal was not only expensive, but also may not be bought.
According to the Ministry of Agriculture and Rural Affairs' monitoring of 500 county markets and collection points across the country, the national average corn price in the fifth week of December (the collection day is December 28) was 3.
05 yuan/kg, up 5.
5%
year-on-year.
The national average price of soybean meal was 5.
07 yuan/kg, up 34.
1%
year-on-year.
From the perspective of the international market, the cost of foreign breeding has also increased
in the past two years.
According to the International Ranch Federation (IFCN), the world feed price index was not lower than $33/100kg in 2022 and $28/100kg
in 2020.
On the other hand, under the background of the new crown epidemic prevention and control, with the rise of labor costs, epidemic prevention costs, energy costs, transportation costs and other raw material prices, the overall operating costs of domestic dairy farms have remained at a high level
.
At the same time, in the case of rising costs, the price of milk does not rise but falls
.
According to the monitoring data of the same time period, the average price of fresh milk in 10 major producing provinces such as Inner Mongolia and Hebei was 4.
12 yuan / kg, down 3.
7%
year-on-year.
The slowdown in milk consumption has also put milk processing companies under "pressure", and some companies can only "powder" the raw milk they have collected
.
According to incomplete statistics, Hebei Province sprays more than 4,000 tons of surplus fresh milk every day, occupying more than
16 million yuan of enterprise funds every day.
Urgently introduce relief policies to maintain the order of fresh milk purchase
Urgently introduce relief policies to maintain the order of fresh milk purchaseIn view of the current difficulties faced by the whole dairy industry in Hebei Province, the Department of Agriculture and Rural Affairs of Hebei Province urgently issued a relief policy on the 6th, and issued the "Urgent Notice on Maintaining the Order of Fresh Milk Purchase and Strengthening Quality and Safety Supervision" (hereinafter referred to as the "Notice"
).
The "Notice" said that at present, affected by the new crown pneumonia epidemic, the development of the dairy industry is facing unprecedented difficulties, the supply of raw milk has increased, the consumption of dairy products has decreased, the cost of breeding has risen, and milk prices have continued to decline
.
In view of the unprecedented difficulties faced by dairy processing enterprises in continuous powder spraying and a large backlog of funds, the Notice said that the 15 million yuan of powder spraying subsidy funds in 2023 will be pre-allocated to dairy processing enterprises before January 20, and the subsidy funds of 25 million yuan in 2022 will be issued at the same time to help dairy processing enterprises alleviate financial pressure
to the greatest extent.
At the same time, dairy processing enterprises are required to "collect all fresh milk in the province, renew the purchase and sales contracts in a timely manner when they expire, effectively protect the interests of dairy farmers, and stabilize the order of fresh milk purchase and sales"
.
In addition, the Department of Agriculture and Rural Affairs of Hebei Province will arrange three working groups to go to key counties in the dairy industry to solve the practical difficulties of farm households and coordinate and solve the contradictions
in the purchase of fresh milk.
The agricultural and rural departments of all cities and counties should regularly hold symposiums for farm households to ensure that no "milk dumping incident" occurs and protect the interests of
dairy farmers to the greatest extent.
For dairy farms, the Notice specifically mentions that it is necessary to establish a sense of risk awareness with dairy processing enterprises and take responsibility for surviving difficulties, strengthen communication and coordination with dairy processing enterprises, and advance and retreat, develop together, and overcome difficulties
.
It is worth noting that there is a certain amount of speculation in the dairy industry
.
When milk is in excess of demand, some farms complain.
However, when milk is in short supply, it is a different story
.
Yuan Yunsheng said that individual farms did not abide by the contract, disrupting the order
of the fresh milk market.
Specifically, there is a type of dairy farm that in the period of milk shortage and milk grabbing, in line with the principle of "maximizing their own interests", "who sells milk at a high price to whom", and even unilaterally tears up the contract and sells fresh milk at a high price to dairy vendors or dairy enterprises in other provinces during the contract period with dairy enterprises in Hebei Province
.
Now that there is more milk, the milk dealers will not collect it, and the dairy enterprises in other provinces will be the first to abandon these pastures
.
While they found factories to pay high processing fees for powdering and storing the raw milk that could not be sold, they begged people everywhere to return to dairy enterprises in Hebei Province to deliver milk
.
In China, to build a dairy farm, as long as there is land and funds, anyone can build it
.
The imbalance in the development of the industrial chain formed by relying entirely on market regulation is also very obvious
.
In recent years, the proportion of dairy enterprises' self-built pastures is getting higher and higher, and when the demand for dairy products is insufficient to reduce the use of fresh milk, priority must be given to ensuring the acquisition of self-built dairy farms, and the risk of limited and rejected fresh milk will naturally be transferred to social pastures
.
Yuan Yunsheng suggested that the construction of dairy farms should be based on reasonable planning and approval of dairy processing capacity, and when necessary, a quota system should be implemented to achieve the balance
between supply and demand of fresh milk as much as possible.
At the same time, in order to protect the interests of dairy farmers and prevent incidents such as "pouring milk and killing cows", Yuan Yunsheng suggested that dairy enterprises that have "refusal to milk, limit milk, refuse to sign contracts" and other behaviors in difficult times should be disqualified from enjoying the above support policies and notified
.
In fact, in the face of rising costs squeezing upstream profit margins, the breeding end must take multiple measures to reduce costs and increase efficiency
.
For example, broaden procurement channels, conduct direct procurement with more manufacturers, strengthen and simplify the procurement process, and reduce procurement costs; Predict the price trend of major forage in advance, expand its own concentrate base and roughage planting, and establish stable cooperation with forage suppliers to ensure that better supply is prioritized under the same conditions
.
