February 17, 2012

China to lead world demand for dairy

China will lead global dairy demand this year, with imports of whole milk powder (WMP) forecast to grow by 7%.

The rise in demand is reported by Dairy Australia, in their February update. Ongoing urbanisation and continuing concerns about the quality and safety of domestic food production support consumer demand.

China's dairy imports have increased rapidly over the past decade from 220,000 tonnes in 2001, to more than one million tonne in 2011.

WMP imports have been the largest product category in recent years. However Chinese whey powder imports became the largest category in 2011, rising from 274 kilogrammes to 356 kilogrammes, 33% of total import volumes. Chinese WMP imports decreased slightly in 2011, down about 6 kilogrammes (1.8%) to 320 kilogrammes and now represent 30% of total dairy imports.

Chinese WMP imports decreased slightly in 2011, down about six kilogrammes (1.8%) to 320 kilogrammes and now represent 30% of total dairy imports.

While WMP is usually the primary focus for dairy demand, Chinese imports of butter and cheese increased more than 20% in the last year alone, and will continue to grow, given changing diets and increasing presence of western style foods.