Chinese thirst for Netherland's milk dries up stocks

[riversedge]

Source: usatoday.com

Chinese thirst for Netherland's milk dries up stocks
Gordon Darroch, Special for USA TODAY 6:04 a.m. EDT August 31, 2015


(Photo: AFP/Getty Images)
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THE HAGUE, Netherlands — Thieves recently struck Edwin Legebeke’s supermarket, but it wasn't run-of-the-mill shoplifting. The criminals absconded with an unlikely, yet highly prized bounty: a dozen tubs of milk powder.

“One of them distracted me, a second one kept the cashier busy, and the third one made off with the goods,” said Legebeke, who owns the store in Doetinchem, a small town 80 miles southeast of Amsterdam. "It makes me raging mad."

Dutch baby formula is such a prized commodity in China that shelves in the Netherlands are running dry amid a thriving black market. There have been 900 thefts of formula in the past year, Dutch police spokeswoman Lisette van Bale said. “Demand is greater than supply and that makes for a lucrative trade for criminals.”

The run on Dutch milk products dates to 2008, when the Chinese government disclosed that one of the country's biggest dairy producers had been watering down formula and adding melamine — an industrial compound used in manufacturing plastics and adhesives. Six children died of kidney failure, another 53,000 were hospitalized with kidney damage or other illnesses and an estimated 300,000 were sickened.

Read more: http://www.usatoday.com/story/news/world/2015/08/28/china-netherlands-milk-powder-thefts/31972605/

[RoccoR5955]

1. So many cows in the Netherlands

They export an awful lot of milk and cheese. It is unusual that they have not planned for this, because the Dutch are known for planning everything out. I am sure that they will work it out.

[Demeter]

2. I wonder, is it made by Nestle's?

and why the hell don't they sell to China direct?

[valerief]

3. Some regulations and oversight in China could correct their problem.

But I guess they view regulations-smegulations like U.S Republican assholes.

[muriel_volestrangler]

4. Odd - there's an oversupply of milk in Europe, and Chinese imports have collapsed

which is causing British farmers to go out of business, since the price is below their production costs:

A 25% drop in the price of the product you sell is difficult for any business to deal with, but the problem is even worse for farmers because many are being forced to sell milk for less than it costs to produce.

According to AHDB Dairy, the average farm gate price for a litre of milk is 23.66p. However, industry experts say it costs farmers 30p per litre to produce milk. If this gap in prices continues, farms face financial ruin. Dairy farms have been closing at the rate of nine a week in the past year in England and Wales.

The price of milk is notoriously volatile, as is the relationship between supermarkets, milk processors such as Dairy Crest, and farms. However, the difference this year is the magnitude of the fall in milk prices, and the fact that there is a ferocious price war taking place between supermarkets, making them a lightning rod for criticism from angry farmers.
...
In response, the supermarkets claim that the fall in the price reflects declining commodity prices around the world and an oversupply of milk in Europe, partly caused by Russia’s block on western imports.

http://www.theguardian.com/business/2015/aug/11/milk-price-row-key-questions

Market prices remain very depressed and although the most recent New Zealand auction recorded some improvement, the absolute price levels being achieved still leave local milk producers incurring heavy losses.
...
Q. Moving on to other dairy products such as milk powder, butter and cheese. They are also hit by falling prices around the world. What are the main reasons for this?

A. The reasons are threefold. The imposition, by Russia, of a ban on EU food products in reaction to the enforcement of sanctions in response to the Ukraine conflict closed the door on the market for one third of the cheese and one quarter of the butter produced within the EU. Secondly, the economy in China is clearly weaker.

China is a country which accounted for 53% of global whole milk powder imports. They are also a significant customer for whey powders. In 2015 the volumes shipped to China have fallen by two-thirds. Thirdly, oil-rich countries have historically also been major buyers of dairy products. As oil revenues have fallen so too has their ability to purchase dairy products. The combined impact of these factors coupled with increased global supply has triggered the price collapse.

http://www.belfasttelegraph.co.uk/opinion/debateni/trevor-lockhart-global-forces-have-sparked-a-collapse-in-local-milk-prices-31471684.html

[brooklynite]

5. When I lived in SE Asia in the 70s, most of the milk products came from New Zealand...

...wonder if they're tapped out as well.

[L0oniX]

6. Human breast milk becomes new luxury item for China's super-rich

Human breast milk becomes new luxury item for China's super-rich with firms even offering wet nurse services

Bizarre trend sees elite paying thousands of dollars a month for service
Domestic staff firms offer expressed milk or served straight from the breast

http://www.dailymail.co.uk/news/article-2356033/Human-breast-milk-new-luxury-item-Chinas-super-rich-firms-offering-wet-nurse-services.html


Wow ...home delivery. Remember the milk man?

[bemildred]

7. This story reeks of truthiness. nt