China’s dairy imports from countries like New Zealand and Germany have dropped significantly, impacting the global dairy industry. The decrease in milk powder imports and a decline in birth rates have led to a surplus of dairy products in the Chinese market. This oversupply has prompted Chinese producers to turn raw milk into powder and explore exporting options.
Despite efforts to educate consumers and promote higher-value dairy products, such as cheese and butter, China has struggled to shift its dairy consumption habits. The country’s reliance on costly animal feed has also contributed to higher production costs compared to other major dairy exporters.
While China currently faces challenges in its dairy industry, many suppliers still see potential for growth in the market. Industry experts believe that there is room for expansion, particularly in products like cheese, which have the potential to thrive in the future.
Overall, the evolving dynamics of China’s dairy market present both challenges and opportunities for global dairy producers looking to navigate the shifting landscape.
Reuters
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