Chinese Economics Thread
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Come on guys, there's a reason why things are subsidise. And the reasons why it isn't subsidise.
The reasons why in New Zealand is because you are the most efficient at farming, you have that competitive advantage. But on the other hands if you go into manufacturing, China will beat the pants off you, you will need to subsidise that in order to be competitive.
The very reason why most of the world subsidise it's farming is because of he seasoning behaviour and market mechanisms in supply and demand. I won't bore you guys on this. But I wrote one of my essays on this when I was a student of economics.
This is one of the main reason how and why the common argricutal policy was set up in the EEC the first place, and just after the war when rationing was still prevalent. But the policy worked to produce food for everyone, but created unwarranted surplus. (The reason for that is another topic which I won't bore you guys with here).
In short, New Zealand have comparative advantage in farming. Which requires no subsidisation.
My father visited Europe and the UK during the '60s and noticed the dairy farm units to be too small to be competitive with NZ, or make a decent living While their farms had 20-40 cows, our smallest dairy farms would be milking about 80-100 cows. Hence the subsidies.
While China has the world beat in general manufacturing, there are niche products that can still be made in their respective home countries if they choose to. The knack is to remain a step ahead of the competitors.
Swiss Swatch watches and the Danish Lego Blocks. It's not for lack of trying by copiers in China, don't think Lego made blocks will ever be supplanted.
Is this the third hammer ?
‘Wake-up call’: China threatens Australia’s iron exports after COVID-19 inquiry
China has threatened to cut off Australia’s $63 billion iron ore export pipeline to Beijing, as relations continue to sour over the COVID-19 inquiry.
China has threatened to cut off Australia’s $63 billion iron ore export pipeline to Beijing following the Morrison Government’s calls for an international inquiry into the origins of COVID-19.
The Chinese government has hinted that Beijing’s boycott of Australian exports could extend beyond beef and barley, describing it as a “wake-up call” for the nation.
It comes after China targeted beef and barley producers this week, sending panic through other industries fearing they could be next on the line.
‘Wake-up call’: China threatens Australia’s iron exports after COVID-19 inquiry
China has threatened to cut off Australia’s $63 billion iron ore export pipeline to Beijing, as relations continue to sour over the COVID-19 inquiry.
China has threatened to cut off Australia’s $63 billion iron ore export pipeline to Beijing following the Morrison Government’s calls for an international inquiry into the origins of COVID-19.
The Chinese government has hinted that Beijing’s boycott of Australian exports could extend beyond beef and barley, describing it as a “wake-up call” for the nation.
It comes after China targeted beef and barley producers this week, sending panic through other industries fearing they could be next on the line.
At this rate, they won't be able to afford the money to improve their armed forces in the way they planned.
The issue is not whether China can produce dairy products like NZ can, but can China find alternative dairy products from other sources ? If China can, then NZ is vulnerable.
Just look at the many countries China can buy barley and beef from other than Australia (see Post # 11516).
Its weird that the article seems to imply Australia is the one being bullied. Losing the power to forcefully pose one's will onto others means getting bullied now?
and too used to bullying developing nations with her west gang? australia's trading regime means china must buy up whatever australia dictate her to?
again, china restated the main issue at hand. mutual benefit can only be found on top of a foundation of mutual respect. australia is too used to "having the cake and eat it all" and does not really understand and respect others because more often than not it can easily coerce developing nations into submission. Do you really Singapore, Indonesia, Malaysia, Papua New Guinea is going to help Australia?
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I would say that imported dairy products would be classed as *luxuries*.
They're not part of the daily diet in China.
And remember that as of 2017, there were 12million cows in China compared to 5million in New Zealand.
So New Zealand is definitely vulnerable.
I think China can go a fair way to meeting her own milk powder needs by regaining the trust of her consumers which were lost over the melamine scandal and improving the quality of her production line start to finish.
I just wanted to add this. The source of this article is from the NZ Herald 2015
he enormous farm at Mudanjiang City in north-east China will have 60,000 more cows than the current biggest dairy farm, also in China.
Russia wants the milk as it is boycotting EU countries’ dairy exports after Brussels imposed economic sanctions over the Ukraine crisis.
The farm is 50 times bigger than the biggest dairy farm in the UK – which has around 2000 cows – and three times bigger than the largest in the US, with 30,000 cows.
China’s Zhongding Dairy Farming and Russia’s Severny companies are behind the $241 million megadairy project.
Feed for the housed cows will be grown on 100,000ha, most of it in Russia.
Earlier this year, the EU extended economic sanctions because of Russia’s involvement in the Ukraine conflict.
In response, Russia prolonged its ban on foods from the EU, US, Australia, Norway and Canada, including milk products, until August next year.
Before the Russian ban, the EU exported about 300,000 tonnes of cheese – about 25 per cent of its production – to Russia annually.
Mansel Raymond, chairman of Copa-Cogeca, the umbrella organisation for European farmers, said the ban and the Chino-Russian dairy venture sent a worrying signal to Europe’s dairy farmers.
«The scale of Chinese investment in dairy production is vast. I wonder now whether we will ever get the Russian milk market back,’ he said.
«Building a 100,000-cow dairy farm is simply mind-boggling. If the 100,000 head represents milking cows, this unit alone could produce 800 million litres a year.
«In that case, it would equate to 100,000 tonnes of cheese – and that would mean this unit alone could produce about 30 per cent of our previous exports to Russia.»
Most Chinese people are intolerant of lactose, a sugar in milk, although it is growing in popularity in the country.
Source:
just looked up
China imports Russian raw milk for first time
Xinhua | Updated: 2019-09-06 16:47
HARBIN - A tank truck carrying raw milk from Russia passed quarantine inspections in a port in Northeast China's Heilongjiang province earlier this week, marking the first time China has imported Russian raw milk.
This batch of raw milk is produced by a Russian pasture owned by Zhongding Dairy Farming, which is only 25 km away from Dongning Port on the border between China and Russia, and the quarantine clearance for its transportation is completed within three hours.
"It marks a new stage of substantial and in-depth exchanges in agricultural cooperation between China and Russia," said Liu jianbo, project manager of Zhongding's Mudanjiang project.
Liu said the raw milk is cold-chain transported and is processed within seven hours in a factory in the city of Mudanjing to guarantee its quality.
Currently, Zhongding has put into operation a 1,000-head dairy farm in Russia. It plans to build ten 5,000-head dairy farms in the Primorsky region of Russia in the next three to five years with a daily output of 1,000 tons of raw milk.
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