Help dairy farmers and revive domestic industry
Since the end of 2014, some dairy farmers in Shandong and Shaanxi provinces have been dumping milk - and have even killed some cows - because of low milk prices. Several factors are responsible for this situation.
First, some companies processing dairy products didn't honor their purchase contracts. About 4,470 tons of fresh milk lay unsold in East China's Shandong alone in the first week of January.
Second, some dairy product companies have raised their quality requirements to buy raw milk, forcing some dairy farmers who couldn't meet the standards to dump their milk. The national quality standard for raw milk is relatively low, and during shortages enterprises tend to buy raw milk following the national standard, but in times of surplus supply they raise their quality requirements.