October 24, 2005

Indian dairy producer seeks to double exports to China
 

Indian dairy giant Gujarat Cooperative Milk Marketing Federation, or Amul, would be seeking to double its exports to China in 2006.

As a worldwide leader in milk production, India was expected to benefit from increased dairy exports to China. Chinese dairy demand has been rising due to increasing disposable income and greater awareness of the nutritional benefits of dairy products.

China currently produced slightly over 24 million tonnes of liquid milk domestically each year, with an annual growth rate of 20-25 percent. However, significant imports were still needed to meet rapidly rising domestic demand.

China also currently imports milk mainly from New Zealand, the US, Australia, France and Canada.

With great potential in China for Indian dairy exports, Amul has already supplied major cities including Beijing and Shanghai with skimmed milk powder. The powder would then be sent to local processors for conversion to ice-cream and yoghurt. Amul also offered butter and cheese.

Amul said it was targeting exports of Rs150 million to China for Q1 2006.