21 February 2020

Dairies raise prices as raw milk costs surge, Xinhua says

Prices of liquid milk products have been on the rise this year in Shandong, Inner Mongolia and Hebei, among other regions as the cost of raw milk has increased due, in part, to higher beef prices, Xinhua reported late Tuesday, citing people with knowledge of the matter. In Shandong province, Inner Mongolia Yili Industrial Group Co. Ltd. (600887.CN) and China Mengniu Dairy Co., Ltd. (02319.HK) raised some of their products’ prices by about 7 percent, the report said. The average purchase price of raw milk in major production areas rose to 3.7 yuan (60.44 US cents) per kilogram in mid-September from 3.4 yuan per kilogram in January.

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