February 20, 2004

China's Dairy Imports Soars 22% in 2003

China imported 288,000 tons of dairy products worth US$318 million in the first 11 months of last year, 22 per cent and 31.8 per cent more from a year ago, respectively.

Out of the total imports, milk powder made up 124,500 tons, a rise of 27 per cent, and imported whey powder was 145,300 tons, an increase of 16.4 per cent, according to Song Kungang, chairman of the council for China Association of Dairy Products Industry on Thursday.

The dairy products sector produced 5.12 million tons of liquid dairy products -- which made up 80 per cent of China's total dairy products output -- from January to November last year, up 58 per cent.

The dairy products sector accomplished 37.67 billion yuan (about US$4.54 billion) in total output value in the first 11 months of 2003, up 35.5 per cent, and scored 43.3 billion yuan in sales revenue, up nearly 37 per cent, and raked in 4.68 billion yuan in pre-tax profits, up 41 per cent.

Observers say that the rising import of dairy products is inevitable as China is an agricultural nation with a limited capability of producing dairy products. But in the recent years, the country has made substantial efforts to help improve its people's health by diversifying their food structure.

Measures include, among others, urging people to drink more milk or soybean milk instead of solely eating porridge for breakfast in their daily life.