China demand for dairy cattle to grow

About 45,000 dairy cattle were sent to China from New Zealand and Australia last year and more would be needed, according to Su Hao, general manager of Chinese dairy facility development business East Rock.

He said demand for Australian and New Zealand produce would continue, even though China was not yet a "dairy country".

Su Hao was speaking at the Australian Dairy Conference at Wollongong in New South Wales, last week.

Describing China's dairy infrastructure as "fragmented", he said it would take some time before a trusted and wholesome milk product will be available consistently to the Chinese public and this would lift demand for dairy products from the Oceania region.

Su Hao said the melamine scandal had affected dairy demand in China but that it had also reinforced to consumers the importance of clean and safe food. Moreover, it had forced the Chinese government to focus on dairy food-safety issues, he said.

This focus of health has boosted the Chinese dairy industry and improved farmer education about the handling of raw milk, according to Su Hao.

Chinese children could hold the key for increased dairy demand. The acceptance of dairy products by the younger generation and the growth of western take-away and fast-food chains should increase demand for dairy products in China into the future, he said.