Sharp growth in China’s import of milk is greatly benefiting Danish Arla Foods, Scandinavia’s largest producer of dairy products and the company is experiencing increased earnings after recent years stable but relatively low earnings.
According to Thomas Carstensen, director of commodity trading at Arla Foods, China’s chief virologist told the public during the pandemic that milk is very healthy and especially this statement has accelerated Chinese consumption.
Thomas Carstensen says to Finans.dk that they are experiencing solid growth in consumption of dairy products in both China and Southeast Asia.
“During the corona crisis, China’s chief virologist informed the public that drinking milk is healthy. This has accelerated consumption and triggered significant price increases for dairy products in China,” he says.
Increased earnings for Arla also means higher pay to the farmers and for them the the price of one liter of milk has increased from DKK 1.86 øre in 2018 to DKK 2.52 øre in April 2021. This increases the price of all dairy products including cream, cheese butter, etc.