Milk produced in Malaysia is just wasted away?

Recently, I heard that about RM20+ of milk which is produced in Malaysia was just poured away. It seems that the manufacturers who need milk as their material prefer imported milk due to a cheaper pricing. Hence, the milk was left to turn sour and just poured away. What a waste..

Why can't the price be lowered down to match with the competition? And minimise the loss as well. It is said that the government plans to set a quota that the manufacturers must buy local milk before buying those imported ones. Another protective mechanism. This is perhaps why Malaysia cannot compete with the other countries. Just let the business owners make losses. Definitely, they will think of ways to make profit, thus increasing the competition and improving Malaysia.

It is the same case as Proton? Why can't Proton manufacture a supercar, when they have a subsidiary which does it and is entering F1 in 2010. Till date, they only show us "Lotus handling". Something like that...