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Chinese Buying Canadian Milk for Baby Formula
USAgNet - 08/10/2017

A $225-million investment from a leading Chinese dairy processor is set to launch Canada back into the export game at a time when several of its major competitors are threatening a trade challenge over Canadian dairy prices.

CBC News reports that Feihe International's infant formula plant, now under construction in Kingston, Ont., plans to manufacture up to 60,000 tonnes of dry infant food annually, using milk from Canadian farms.

About 85 percent of the baby formula will be shipped back to China to feed an anticipated baby boom, as the country's one-child policy phases out.

"It was a signal that the Canadian dairy industry is open for business, that other countries want to come to do business in our industry," said Graham Lloyd, the general manager of the Dairy Farmers of Ontario.

Open for business, but not everyone agrees the price they're going to charge is fair.

Canada's dairy industry is bracing for more competition when the EU trade deal takes hold this September. Canada is under pressure from the U.S. and others to open its tightly regulated market even more in upcoming trade negotiations.

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