Guangzhou China Oct. 27, 2010 - China has totally imported 286,600 tonnes WMP & SMP mainly from New Zealand, the US and Australia in the first eight month of 2010, up 75.70% compared with the same period in 2009. The average price of imported WMP & SMP is USD3,703 from January to August in 2010, up 39.70% compared with the same period last year. The greatly increasing price of imported WMP & SMP after melamine accident results from consumers' trust in imported WMP & SMP and the short supply on local raw milk.
Milk powder has gone through its industry reshuffle after the melamine scandal. A deficit in raw milk production base and increasing demand for imported WMP & SMP stimulate the imported volume of WMP & SMP.
Moreover, production cost of raw milk and import volume of WMP & SMP continuously increase, which let the international producers have a good benefit. On the other hand, The local producers is to face more and more stress in the next few months. In this situation, large imported volume of WMP & SMP makes the producers face the risk of overstock and tough sell of local WMP & SMP. Thus, The government should strengthen the supervision on local WMP & SMP and inspection on imported WMP's & SMP's price and volume to avoid local producers' loss resulting from centralized import of WMP & SMP.
Source: CCM International