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China's milk boom

Overview

Milk and milk products have been China’s fastest growing agricultural products in recent years. Though most consumption is in cities, particularly Beijing, Shanghai and Guangzhou, it is also rising fast in the countryside. Despite dietary constraints, this growth is set to continue. As in so many other sectors, Chinese demand is fuelling increases in world prices.

The industry is in need of consolidation. Three big processing groups are surrounded by 1,600 smaller firms. Farms...

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