Tue, Aug 16, 2011 - Page 2 News List

Dairy farmers’ milk purchase price to rise

By Lee I-chia  /  Staff Reporter

The acquisition price for milk from dairy farmers is expected to increase NT$1.90 a kilogram beginning on Oct. 1, to reflect the increasing cost of cow feed the Council of Agriculture (COA) said yesterday.

The National Animal Industry Foundation’s milk pricing council decided to raise the acquisition price last week, Department of Animal Industry section chief Chen Chung-hsing (陳中興) said, adding that an announcement would be made next month.

Cows have struggled with the recent high temperatures, which lowers their appetite and food intake, said a dairy farmer surnamed Huang (黃) from Tainan County, adding that maintaining a cooling system at the farm and the rising price of cow feed was costing him tens of thousands of dollars per month.

Because of the increased frequency of natural disasters worldwide, the cost of feeding dairy cows with imported feed has also risen, with a 12.2 percent average increase in prices for nine types of cow feed from October 2009 to June this year, the council said in a press release yesterday.

In response to speculation that the retail price of milk could also rise after October, the council said the milk acquisition price would increase 7.99 percent, though the milk price set by dairy product manufacturers would be contingent on market mechanisms.

The council said it would continue to assist dairy farmers by promoting domestic pasture growth, with the goal of achieving a 54 percent domestic feed supply.

The council would also work to develop cooling systems for dairy farms, it said.

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