China’s Whole Milk Powder Production Set to Increase in 2024
Source: DairyNews.today
China’s whole milk powder (WMP) production is expected to rise in 2024, driven by an increase in raw milk production, according to the latest USDA Dairy World Markets and Trade report. As fluid milk markets face saturation, excess raw milk is being diverted to WMP production, which offers a longer shelf life and can be stored for future use. However, despite this growth, WMP remains less profitable for dairy processors, leading them to limit raw milk purchases for drying.
This limitation has placed pressure on farms without established purchasing contracts, forcing them to sell their excess raw milk at prices below production costs. Provincial government subsidies have played a crucial role in supporting dairy processors by offsetting losses, thus facilitating continued WMP production growth.
The demand for WMP is anticipated to see modest growth in 2024, particularly due to its widespread use in processed food and beverage products. However, the growth is expected to be more restrained compared to previous years as the market normalizes following increased consumption during the pandemic.
China’s WMP imports are projected to decline in 2024, owing to substantial domestic production and significant inventories fr om previous years. Historically, Chinese dairy processors preferred imported WMP for its reliable quality and nutritional consistency. However, improvements in the quality of domestically produced WMP are gradually shifting this preference, reducing the need for imports. Elevated domestic production levels, combined with large carryover stocks, are likely to lim it import demand in the coming year.
The demand for WMP is anticipated to see modest growth in 2024, particularly due to its widespread use in processed food and beverage products. However, the growth is expected to be more restrained compared to previous years as the market normalizes following increased consumption during the pandemic.
China’s WMP imports are projected to decline in 2024, owing to substantial domestic production and significant inventories fr om previous years. Historically, Chinese dairy processors preferred imported WMP for its reliable quality and nutritional consistency. However, improvements in the quality of domestically produced WMP are gradually shifting this preference, reducing the need for imports. Elevated domestic production levels, combined with large carryover stocks, are likely to lim it import demand in the coming year.
