China’s Ministry of Agriculture and Rural Affairs: Slower Growth in Dairy Farming, Reduction in Breeding Losses 10-29-2024

Summary: At a press conference held by the State Council Information Office on the performance of the agricultural and rural economy for the first three quarters of 2024, Zhang Xingwang, Vice Minister of Agriculture and Rural Affairs, reported that recent efforts have led to a reduction in beef cattle inventory and a slowdown in dairy farming growth. This stabilization has allowed prices to recover and eased some of the production difficulties, reducing losses for breeders.

 

On October 25, the State Council Information Office held a press briefing on the agricultural and rural economic performance for the first three quarters of 2024. Zhang Xingwang, Vice Minister of Agriculture and Rural Affairs, noted that the recent declines in beef and dairy cattle prices and the resulting financial challenges for farmers have drawn widespread public concern. Since last year, beef and milk prices nationwide have been steadily declining, leading to operational difficulties for farmers in an already complex and severe market environment. However, recent collective efforts have led to an adaptive reduction in beef cattle inventories, a slowdown in dairy farming growth, price stabilization, and a decrease in financial losses for breeders.

 

Zhang explained that in response to the significant challenges in the cattle and dairy industries, the Ministry of Agriculture and Rural Affairs has taken swift and concerted action to assist farmers and businesses. This included conducting specialized research, sending teams to major production regions for guidance, issuing cost-reduction and efficiency-enhancement guidance, and implementing policies to minimize production costs. The Ministry has also strengthened coordination with other relevant departments to increase fiscal and financial support, helping farms to mitigate losses.

 

In late September, the Ministry, along with six other departments, including the National Development and Reform Commission, released the “Notice on Promoting Stable Development of Beef and Dairy Cattle Production,” outlining a comprehensive policy package across seven areas. Major production regions, such as Inner Mongolia and Xinjiang, have also introduced practical measures based on local conditions, including farming subsidies and fresh milk spray drying subsidies. These measures have alleviated some of the industry’s difficulties.

 

Zhang added that going forward, efforts will focus on the effective implementation of various policies to help the industry weather current challenges, with emphasis on “five reinforcements”:

 

    1.  Reinforced Monitoring and Early Warning: Conduct thorough analysis and assessments of the market, promptly releasing data on industry trends to guide farmers in adjusting herd structures for stable production.

    2.  Reinforced Capacity Stabilization: Encourage local governments to expedite the distribution of funds for expanding and improving core breeding cow herds, thereby sustaining the foundational breeding stock and enhancing reproductive efficiency.

    3.  Reinforced Forage Supply Assurance: Maximize support policies, such as the forage-to-grain conversion program and alfalfa development initiatives, to help farmers secure forage reserves.

    4.  Reinforced Financial Support: Facilitate support from financial institutions through reasonable loan extensions, renewals, and other measures without arbitrary loan restrictions. Primary production regions are actively implementing these measures with robust backing from financial institutions.

    5.  Reinforced Technical Support Services: Promote a series of efficient and practical technologies focused on breeding, feed, health, and management to help farmers reduce costs, improve quality, and increase efficiency.

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