November 12, 2019

Brazil will begin exporting dairy products to China

The struggling dairy industry will see more income and increased demand from exporting dairy products to China for the first time, reported CGTN America.

This follows China government approval for 24 Brazil dairy plants to export to China early this year as China sees a marked demand for dairy products in the last few years.

Existing demand for powdered milk has seen the product placed as a vital commodity in the global dairy market, but Brazil's dairy industry is hoping to export high-value dairy products such as butter and cheese.

Current dairy production only covers local demands, but Alexandre Guerra, president, Union of Dairy Producers of Rio Grande do Sul said the dairy sector will respond rapidly, expanding to meet increasing global demand for dairy products.

There are 1.2 million small dairy farmers, according to the Brazil government. These farmers have to settle for low product prices, and hope the increased trade with China will benefit them in the long run.

Brazil's dairy industry hopes that the Chinese market will lead to more emerging markets seeking Brazil as a source for dairy products, especially as China has high standards to meet before opening its market to a country.

-      CTGN America