According to research firm Mintell, growing demand for dairy products in China combined with a slowing of manufacturing and a need to upgrade and enhance a reliable cold chain logistics system by producers are likely to cause prices of milk products in China to increase in the mid to long term. Per capital milk consumption increased by 50% over the past five years to equal 24 liters per person per year by 2012. Overall milk demand will see a compound annual growth rate between 2012 and 2017 of 8.2% while domestic supply will increase by only 1.2% over the same period, also creating the environment for higher prices. The study also concluded that as household income increases so does the consumer’s willingness to pay more for imported dairy proudcts.
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