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U.S. Milk Market Expanding into China
March 16, 2014

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The American dairy market is expanding, with more and more exports earmarked for China, the world's fastest growing economy.

A typical order for many dairy plants around the United States is to save up nearly every bit of milk powder for a shipment to China, where demand for milk produced outside the country's borders is still high, following a 2008 incident of locally produced milk being contaminated, resulting in the deaths of six children and the illnesses of 300,000.

To fill that growing demand, American dairy farmers have joined their counterparts in France, Germany, and New Zealand in selling milk powder to China, where biological milk feeding of infants is frowned on and distribution to rural areas is not only small but unreliable, resulting in a high demand for milk powder.

As a result, shipments of milk to China totaled more than $700 million in 2013, a marked increase over the last recorded figure, about $130 in 2009.

The result is increased production and profits for American dairy farmers but higher prices on the domestic market.

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