The policy restricted couples from having more than one child. The new policy allows two children per couple.

In 2013, the Chinese government repealed portions of this policy, but the change failed to result in more births. Analysts note that the competitiveness of the Chinese society and the high cost of raising children may not produce the intended results after the cancellation of the policy.

Chinese demand for dairy products plays a key role in world dairy exports.

However, dairy product imports into the country are likely to be down by 40% this year due to an overstocking of dairy products. China absorbs almost half of the world’s imports of WMP (whole milk powder).

The announcement to end the one-child policy boosted makers of infant formula including Danone. Its share price rose by 3% in Paris yesterday. Danone, Nestlé SA and US-based Mead Johnson Nutrition are among the biggest players in China’s $19bn infant formula market, according to Bloomberg.

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Abolition of China’s one-child policy may boost dairy demand

China’s decision to end its one-child policy, which has been in place since 1979, should create more demand for dairy products there.