China: Dairy and Products Annual 2012

An increase in dairy herd numbers and use of high-quality forage is increasing China’s domestic fluid milk production. Domestic consumer preference for safe, reliable products continues to support estimates of higher 2013 imports of 14.35 MMT, benefitting the primary suppliers from the European Union. U.S. producers, China’s largest supplier of non-fat dry milk powder, should continue to see export opportunities grow as Post forecasts a 16 percent growth in NFD milk imports to 230,000MT. Price advantage over whole milk powder, rising consumer and industrial demand and small domestic production will continue to influence the orders for NFD milk imports. Nevertheless, demand for whole milk powder, continues a steady upward trend, with favorable global prices and safe product requirements, influencing import demand. China’s whole milk powder exports are expected to rise by 10 percent in 2012 to 11,000 MT, primarily to Hong Kong and small African and southeast Asian countries.