July 31, 2024

 

China reduces dairy imports with surge in domestic production

 
 


A recent report indicates that China's decline in dairy imports is due to increased self-sufficiency in domestic dairy production, Brownfield Ag News reported.

 

Mary Ledman from RaboResearch explained to Brownfield that China began increasing its milk powder stocks around four years ago but has significantly reduced imports after reaching sufficient levels. She noted that China has been boosting its domestic dairy production to achieve greater self-reliance. "In the 2018/19 time frame, they passed a bill similar to the US farm bill, which supported the expansion of milk production by 11 million metric tonnes."

 

Ledman highlighted that China's dairy production target of 40.5 million metric tonnes was achieved a year earlier than planned in 2023. "That's about 25 billion pounds of milk added in five years. For comparison, Wisconsin produces about 30 billion pounds, so it's like adding almost another Wisconsin's worth of production, which is very impressive."

 

China's self-sufficiency in dairy has increased from 70% to approximately 85%. "They have significantly reduced imports of liquid milk, packaged milk, and whole milk powder. However, one of the largest exports from the US to China is whey powder, which is extensively used to feed baby swine."

 

Ledman pointed out that whey powder, a byproduct of cheese production, remains a positive export for the US because China has not expanded its cheese production sufficiently to meet the demand for whey powder in its swine operations.

 

-      Brownfield Ag News

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