2012 To Serve Up More Hurdles For Chinese Dairy Producers

Looking to offset previous hits taken on margins, Chinese dairy producers such as China Mengniu Dairy have increased the prices of some of their products. With consumer confidence in domestically produced consumer goods marred by the recent spate of food safety scandals, these price hikes are likely to further prolong a recovery in the domestic dairy sector. These dynamics, coupled with softening demand conditions in the coming quarters, suggest that 2012 could serve up more challenges for Chinese dairy producers.

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