Imported milk powder may overtake domestic producers

China imported a record volume of milk powder in 2010, blowing domestic milk powder producers and the whole industry chain out of the water, chinanew.com reported Tuesday, citing an official of the Ministry of Agriculture (MOA).

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Ma Ying, deputy director of the MOA dairy industry management office, said China imported 370,600 tons of milk powder in the first 11 months of 2010. Before the melamine scandal in 2008, domestic milk powder brands accounted for about 60 percent of the market, while in 2011, they may make up less than 50 percent of it, while imported milk powder takes over the rest.

Overseas milk powder producers rake in huge profits with a profit rate of at least 40 percent, due to the unreasonably high prices Chinese consumers are forced to pay for imported milk powder, Ma said.

Milk powder imports have weakened the dairy industry and may result in unemployment.