October 29, 2005

USDA: China dairy and products annual report 2005

China's dairy industry continues to develop as post forecast in the previous annual report CH4050, although the pace of growth will slow during 2006. Total raw milk production for 2006 is forecast to increase 20 percent to 34.94 MMT and cow milk production for 2006 is forecast to increase 20.71 percent to 33.8 MMT.

The pace of grow is forecast to decrease 2.88 percent for total milk and 3.15 percent for cow milk respectively due to higher production cost and smaller pace of increase in consumption

China's fluid milk imports are insignificant and forecast at only 5,000 MT in 2006. 

China's dairy exports markets are East and Southeast Asia. Fluid milk exports for 2006 are forecast stable at 31,000 MT. Hong Kong and Macaw account for 97 percent of China's total fluid milk exports due to geographical proximity. 

Although export volume to Hong Kong may decrease about 8 percent, export value is expected to increase slightly.       

For the full USDA report, click here.