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China's Dairy Industry Overview - 2023

China's dairy market in 2023 reflects its position as a significant global influencer, with substantial production capabilities and advanced processing technologies. The country navigates a dynamic trade landscape, responding to both domestic and international demands.

Key Statistics

• Number of Dairy Cattle: China is focusing on efficient cattle management amidst ongoing reforms.
• Milk Production Volume: Approximately 36 million tons annually, underscoring China's substantial contribution to global dairy supply.
• Milk Processing Volume: Around 60.18 million tons per year, showcasing the country's advanced processing infrastructure.
• Cheese Production Volume: The cheese sector is growing as consumer demand rises, although specific figures are not detailed.
• Milk Powder and Whey Production: A notable decrease of 11% in skimmed milk powder exports alongside an increase in whole milk powder production.

Key Enterprises

• Junlebao Dairy Group Co., Ltd.: Notable for its IPO and expansion endeavors.
• Bright Dairy Holdings: Known for significant investments in Synlait.
• Yili Group: A formidable force in China's dairy sector.
• Mengniu Dairy: Leading at a national level.

Export and Import of Dairy Products

While China's export of skimmed milk powder decreased by 11%, imports remain strong, fueled by high domestic demand, reaching up to 17.18 million tons. This shift underscores the evolving dynamics in China's dairy trade.

Significant Events

• Junlebao Dairy's Public Stock Offer: Highlights market strength and investor interest.
• Bright Dairy's Financial Support: A strategic collaboration with Synlait.
• Stabilization Measures: Focused on optimizing dairy and beef production.
• Global Market Influence: China's demand affects countries like Poland.
• UHT Milk Market Projections: Expected valuation of USD 15.2 billion by 2034, with a CAGR of 6.5%.
• Food Safety Updates: Current reviews on sterilized milk standards.
• Trade Relations: Initiatives include the Forum on China-Africa Cooperation.
• Mengniu's Ningxia Facility: Recognized as a 'Lighthouse Factory' by the World Economic Forum.
• Domestic Milk Powder Production: Meets 60% of national consumption needs.
• U.S. Dairy Exports: Noted a 13% decline as of September 2023.
• Tariff Considerations: Discussions with the U.S. could affect pharmaceutical exports.
• National Dairy Innovation Center: Emphasizes technological advancements in dairy.
• High-Protein Whey Exports: U.S. WPC80+ exports surged by 225% annually.
• Russian Ice Cream Imports: Increased 1.4 times, valued at $2.7 million.

Market Dynamics

The Chinese dairy sector faces challenges such as overproduction and evolving consumer preferences alongside complex trade environments. The rise of domestic companies and increased imports from Russia are strategic moves responding to demographic shifts. Despite issues like reduced powdered milk demand and higher tariffs, strategic expansions and trade negotiations persist.

China's declining birth rate necessitates innovative strategies to rejuvenate the market. Alignments with the European Union and Canada to counteract U.S. tariffs highlight ongoing international trade tensions. Changes include new standards banning the production of drinking milk from dry milk powder by 2025, emphasizing only raw milk usage for sterilized milk production. Regional contributions from China, North Asia, and Oceania have shown a significant 9.9% rise in like-for-like sales. Additionally, Danone's sales growth aligns with intensified demand for infant formula in China.

China remains one of the most promising yet most demanding markets for food exports, especially dairy products.

Modified: 2025/05/02