China is an important buyer on the world dairy markets, with a strong influence on global demand that plays into price dynamics. Imports of dairy products to China continued to decline in 2023, driven by increased domestic production and weaker consumer demand.
Imports of dairy products into China totalled 2.6 million tonnes in 2023, down 12% compared to the previous year. Looking across the different dairy products, we see that imports of milk powders and liquid milk and cream were both down year on year, while yogurts and whey products saw increased import volumes. The decrease in powder imports was driven by a significant reduction in WMP volume, down 38% year on year. In contrast, SMP imports saw mild growth, with volumes up by 3% in 2023 compared to 2022.
Increasing domestic production
These changing trends in product imports are, in part, driven by increased domestic production in China. USDA figures show Chinese milk production totalled 41 million tonnes in 2023 – up 4.6% from the previous year and a 28% increase compared to 2019.
Becky Smith
29 February 2024
Comments