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China Dairy Farms Swim in Milk as Fewer Babies, Slow Economy Cut Demand

China is awash in unwanted milk as falling birth rates and cost-conscious consumers have cut demand even as dairy farms expanded in recent years, forcing smaller farmers out of business and squeezing shipments into the world's top importer.

China's milk surplus illustrates the unintended consequences of Beijing's food security-driven efforts to boost its dairy sector by touting consumption and encouraging expansion. High costs and the legacy of an adulteration scandal in 2008 that killed at least six children and hospitalized thousands, meanwhile...

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