Saturday, September 19, 2009

Chinese demand behind higher prices of dairy raw materials

Dutch Lady Milk Industries Bhd foresees the price of dairy raw materials, such as milk, increasing by between 10 and 20 per cent from the US$2,000 per tonne currently due to an increase in demand.

"Raw material cost has started to increase again, mainly due to a change in buying behaviour. China is purchasing a lot of raw milk powder in line with the country's economic growth," its managing director Hans Laarakker said.

"The volatility in prices is worrying," he added.

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