May 7, 2004

 

 

China's Imports of Dairy Products to Grow Steadily in 2nd Quarter 2004

An Analysis of China's Dairy Industry in 1st Quarter

An eFeedLink Exclusive Report   
 

During the first quarter of 2004, China's dairy production has grown rapidly, with market prices of fresh milk generally on an upward trend.  Import and export value of dairy products went up, with value of exports rising sharply, while value of imports increased steadily.

 

1. Analysis of Dairy Production

 

The dairy industry has been a focus of China's development in livestock and animal husbandry since 2003. In 2003, China produced a total of 18.486 million tons of dairy products, up by 32% compared with the total production in 2002. Milk production was at 17.4628 million tons, registering a year-on-year increase of 34.35%; milk cow inventory was 7.587 million heads, registering a year-on-year rise of 10.39%.

 

China's dairy industry has maintained strong growth and its milk production is expected to rise by 30% to reach about 3.95 million tons in the first quarter of 2004.

 

2. Analysis of Fresh Milk Prices

 

Average fresh milk price in China during the first quarter of this year has risen by a certain margin compared to the same period last year. Fresh milk prices in major cities of China in the first quarter hovered around RMB2.31 per 500ml, a year-on-year increase of 9%. The price rise is mainly due to the general increase in prices of feed products since the fourth quarter of 2003. 

 

3. Imports and Exports of Dairy Products

 

From January to February 2004, China's import and export value of dairy products has risen, with import value rising sharply, while export value increased steadily.

 

According to China's customs statistics, the import and export value of dairy products in the first two months of 2004 was higher by US$73.82 million compare to the same period last year, to US$86.1054 million, registering a year-on-year increase of 16.6%. The import value accounted for 91.7% of the total import and export value. The total import and export volume were 66,737 tons, of which import volume made up 88.8% of the total import and export volume.

 

3.1 Imports of Dairy Products

 

According to China's customs statistics, a total of 59,295 tons of dairy products were imported to China, a year-on-year decrease of 0.56%. The total import value was US$78.9974 million, up by 18.8% compared to the same period last year.

 

During the first quarter of 2004, the import volume registered a year-on-year rise of 70%, while the import value showed a remarkable year-on-year increase of 86%. China imported dairy products mainly from New Zealand, Australia, France, USA, Finland and Ukraine, accounting for 63.2%, 13.1%, 8.1%,5.3%,3.5% and 1.6% respectively of the total import value.

 

3.2 Exports of Dairy Products

 

During the first two months of 2004, China exported a total of 7441.62 tons of dairy products, up by 5.17% compared to the same period last year. The export value was US$7.108 million, down by 2.92% compared to the same period last year.

 

China exported its dairy products mainly to Hong Kong, Myanmar and Taiwan, constituting 69%, 11.9% and 7.5% respectively of the total export value. 

 

Conclusion

 

Overall, with the positive growth seen in China's dairy industry during the first quarter of this year, China is expected to maintain a steady growth in its imports of dairy products in the second quarter of 2004.