Abstract: Since the second half of 2007, the raw milk price fluctuation in China can be divided into three stages. The breeding cost, the supply and demand of raw milk, the quality of raw milk, imports of dairy products, international dairy price, climate, epidemic situation and policies are the main factors of influencing raw milk price fluctuation. Excessive fluctuation of raw milk price will affect the interests of dairy farmers, dairy enterprise and consumers. So, the scientific dairy development plan should be made, the transaction of raw milk should be regulated, and the monitoring and early warning mechanism, reasonable raw milk price formation mechanism and benefit coupling mechanism between dairy enterprise and dairy farmers should be constructed.

Key words: raw milk, price fluctuation, price formation mechanism, benefit coupling mechanism, dairy industry