Aside from the environmental degradation, one of the fears of Dairy Intensification for China was always what happens when China can simply reproduce that same basic bargain bin milk powder product at an even cheaper price than we can.
Well, we are about to find out…
A2 Milk Co. led stock market losses of $875 million among infant-formula providers in Australia and New Zealand after China unveiled a plan to boost local output and reduce reliance on imports.
Under the new program, China aims to exceed 60% self-sufficiency for baby formula and improve the quality of domestic brands in its $27 billion infant-formula industry. Authorities are seeking to bolster consumer confidence following a deadly milk scandal in 2008.
…if your KiwiSaver is looking a lot lighter today it’s because every NZ company connected with shipping basic bargain bin milk powder just got the bejesus kicked out of them.
For years we’ve warned about exporting base product with no value add, well here comes the I told you so Express.
So Dairy Intensification as part of Key’s pump & dump economic legacy not only robbed us of water and damaged the quality of our water while contributing to climate crisis gases, it also left an enormous level of debt to pay for that intensification which the industry will be left in the lurch for as our main export market moves to produce their own basic bargain bin milk powder.
The Climate Crisis demands we radically shift from dairy but we don’t, so the bottom of the market falling out of the entire industry may well be the impetus for change.