Droughts in the United States and a drought in Europe have threatened the growth of major crops such as wheat. Food production has led to soaring international food prices. In mid-May, the U.N. Food and Agriculture Organization (FAO) issued a World grain price index of 265 points, exceeding 30 points from the 2008 food crisis. According to a French television broadcast of an interview with a farmer, raised cows have been unable to find enough pasture grazing. Hay feed was harvested one months earlier than the scheduled season and produced only half of the previous year. Food fluctuations directly lead to fluctuations in feed prices, thus threatening the cost of aquaculture. However, the main production areas of corn and soybeans in the northeast, where the farmers in the transport costs occupy a greater advantage, predicting if the main crop prices continue to rise, the Northeast Dairy enterprise cost and competitive advantage gradually emerged. The sustained rise of international food prices will inevitably bring about the price of milk source. Analysts believe that northeast China as one of the most important source of milk, at the same time occupy as the main dairy cattle feed soybean, corn, pasture advantages, the future of the Northeast dairy enterprises, such as the global dairy industry cost advantages will gradually appear, competitiveness will be further strengthened.
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