27-03-2014 01:35 AM | China

Chinese dairy giants' global race for milk leaves small local farmers in the lurch

Every morning, retired forest worker Li Shulin and his wife get up at 5 am, milk the cattle in the shed, load the fresh milk on a truck, and drive to the nearby milk station to sell it to Swiss food giant Nestle, a major raw milk collector in the area.

Having raised cows for almost four years, Li says it’s getting harder to make a living, as the cost of forage is growing rapidly and dairy companies’ standards on milk collecting becoming tougher.

“The price of cow forage has risen much faster than the milk price during the past two years. Forage is now sold at 3,000 yuan per tonne already, which is nearly 20 per cent higher than a year ago,” said 60-year-old Li, who lives in a small village in the Hulunbuir Grassland in northern China's Inner Mongolia region.
Full Story : South China Morning Post