The Impact Of Global Dairy Industry On The Global Economy Essay

1135 Words Sep 22nd, 2015 5 Pages
Question a

Since the dawn of new millennium, the development of the economy has growth rapidly in the global, therefore, the development of diverse industries is widely promoted. However, after few years of time, the global economy collapsed which caused by financial crisis in 2008. During this time of period, almost all different kind of industries were influenced by this crisis, including dairy industry. According to the historical data of Global Dairy Trade (GDT) price, it decreased considerably from $1489 to $691 among the whole year and it had a continually decreasing tendency in 2009. Moreover, the recovery of the global economy has been dampened because of the high levels of debt and unemployment which were caused by financial crisis in some affluent countries, therefore the price of Global Dairy Trade did not raise back to the original level. In 2012, there were two main reasons that influenced the global dairy industries. The first culprit was the European debt crisis and another one was the expanding amount of the global milk production, which was more than the demand of the world share, therefore, the international price was weakened. In recent years, China is one of the significant cause that can not be ignored. As the country that with the largest population, there are huge amount of dairy product need in the market. Due to the food safety incident of milk powder in China at 2008, the general public began to lose their confidence on the domestic dairy products,…

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