China scraps one child policy, good for New Zealand

According to Official Xinhua news agency, China has finally decided to scrap its one child policy after decades. The policy was introduced back in 1979, to control exploding population. However over the years, birth rate in China has fallen and now hovering around lowest level in more than half a century. Since the introduction of the policy, China's birth rate has dropped to less than one/third of the rate prevailing in 1970s.

The withdraw of the policy came after four days party meeting designed to approve plans for next five years.

Speculation has been high for quite some time for the move.

The move is a good news for dairy farmers in New Zealand. New Zealand produces third of world's milk and China already stands as the largest market of infant formula milk in the world.

However, any immediate major move in the Kiwi over the news unlikely given the longer term nature of this development.

But this could be the time to think before shorting the dairy and dairy stocks for long term.