China's Butter Imports Surge Amid Growing Domestic Demand and Preference for Quality
Source: The DairyNews
In 2024, China is witnessing a significant increase in butter imports, driven by rising domestic consumption across various sectors including bakery products, yogurt, ice cream, and food services, according to a USDA report.
High-end food processors, particularly premium bakeries, are showing a marked preference for butter over plant-based alternatives, reflecting a broader trend towards premiumization in food ingredients.
The first half of 2024 saw a 10% increase in butter imports, with the majority sourced from New Zealand and the European Union. Despite a slight uptick in domestic butter production, fueled by increased dairy processing activities and a surplus in fluid milk production, the quality of locally produced butter and cream has often fallen short of the standards required for high-end uses. This discrepancy has reinforced China's reliance on imported products for premium applications.
Notably, New Zealand dominates the Chinese butter import market, accounting for almost 90% of the market share in early 2024. This strong position underscores New Zealand's strategic focus on producing high-value dairy products that cater to international markets, particularly in regions with growing demand for quality dairy ingredients.
As China continues to expand its consumption of butter and related products, the dynamics of the global dairy trade are expected to shift, with increased opportunities for major exporters like New Zealand to consolidate their positions in lucrative markets.
The first half of 2024 saw a 10% increase in butter imports, with the majority sourced from New Zealand and the European Union. Despite a slight uptick in domestic butter production, fueled by increased dairy processing activities and a surplus in fluid milk production, the quality of locally produced butter and cream has often fallen short of the standards required for high-end uses. This discrepancy has reinforced China's reliance on imported products for premium applications.
Notably, New Zealand dominates the Chinese butter import market, accounting for almost 90% of the market share in early 2024. This strong position underscores New Zealand's strategic focus on producing high-value dairy products that cater to international markets, particularly in regions with growing demand for quality dairy ingredients.
As China continues to expand its consumption of butter and related products, the dynamics of the global dairy trade are expected to shift, with increased opportunities for major exporters like New Zealand to consolidate their positions in lucrative markets.
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