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Article Responses China Dairy Supply and Demand- China is the largest country in the world by population and fourth largest by size. Its diverse economy is slowly becoming more modernized. Not only is the country growing and developing, but so is the dairy market. Because of this increase in dairy consumption, China is exceeding its domestic market. Markets in other parts of the world like New Zealand, America, Europe, and Australia are now seeking opportunities to export into the Chinese market. Chinese markets have also began investing oversees to guarantee supplies like powdered milk, cheese, and other dairy products. The primary source of demand growth in the global dairy market is in China. 12 percent of the global dairy market now belongs to China (2016), which is an immense growth from less than 5 percent (2002). Melamine is a type of plastic used to make utensils and cookware. In 2008, melamine adulterated milk brough the whole Chinese dairy marked to a halt when it killed 6 babies. In response to this scandal, the Chinese government has cracked down on regulations and tried to rebuild the dairy industry. From 2009 until 2016, there were 24 different policies put into effect that related to food safety, production of milk, and dairy trade. The dairy demand is so high right now that China will no longer be able to rely on their domestic industry and they will have to count on imports. New Zealand and Australia have signed free trade agreements with China already regarding exporting. The dairy products imports are taxed at an unusually high rate compared to other expenses that inputs to the industry like feed, vaccinations, and veterinary technology. The main issue with the United States trying to export dairy into the Chinese market is that the US dollar and yuan exchange rate is very unfavorable. One USD is almost 7 yuan, whereas one Australian dollar is about 4 yuan. The exchange rates in Europe and Australia are more favorable. America continues to be a top supplier of agricultural commodities overseas, especially in China. Fortunately, the US will economically benefit from this and in the future, the value of exports from the US will be reflected in both American and Chinese policy. Article 14 of degree 145 has caused problems for the Food and Drug Administration in the US because it states that the food manufacturer complies with the food regulations, standards, and laws in China. Degree 145 also requires all exporting manufacturers to be registered with the General Administration of Quality Supervision, Inspection, and Quarantine (AQSIQ). The FDA does not generally attest to foreign standards, so this has made it increasingly competitive for some dairy manufacturers in the United States to register. The European Union was the largest exporter of dairy products to China

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