Alliance boosts dairy industry

Despite considerable improvements in the safety and quality of domestic dairy products following the melamine scandal of 2008, China's dairy farmers still face challenges.

The fragmented supply system remains a problem and progress with mergers and acquisitions remains slow, and they face competition from lower-price imports, especially large-scale imports of milk powders.

When milk prices are at a low level it can lead to the dumping of milk and the killing of cattle. The forced large-scale production cuts at a time of slumped prices also make it difficult for dairy farmers to benefit when prices start to rise again.