China’s Dairy Self-Sufficiency Impacts Global Dairy Exports
Source: The DairyNews
A recent report indicates that China's reduction in dairy imports is a result of its rapid progress towards self-sufficiency. Mary Ledman from RaboResearch informed Brownfield that China initiated efforts approximately four years ago to bolster its milk powder reserves but has since significantly reduced imports after achieving substantial stock levels.
In addition to stockpiling, China has been increasing its domestic dairy production. Ledman explained, "Around 2018-19, China introduced its version of the farm bill, which supported the expansion of milk production by an impressive 11 million metric tons."
China achieved its dairy production goal of 40.5 million metric tons a year ahead of schedule in 2023. "This is equivalent to about 25 billion pounds of milk added over five years, which is nearly the same as adding another Wisconsin to their production, a remarkable feat," Ledman remarked.
China's self-sufficiency rate has risen from 70% to approximately 85%, significantly reducing imports of liquid milk, packaged milk, and whole milk powder. However, whey powder remains a significant import from the United States. Ledman pointed out that whey powder, a byproduct of cheese production, is essential for feeding China's baby pigs. Despite their advancements in dairy production, China has not expanded its cheese production, ensuring continued demand for U.S. whey powder exports.
China achieved its dairy production goal of 40.5 million metric tons a year ahead of schedule in 2023. "This is equivalent to about 25 billion pounds of milk added over five years, which is nearly the same as adding another Wisconsin to their production, a remarkable feat," Ledman remarked.
China's self-sufficiency rate has risen from 70% to approximately 85%, significantly reducing imports of liquid milk, packaged milk, and whole milk powder. However, whey powder remains a significant import from the United States. Ledman pointed out that whey powder, a byproduct of cheese production, is essential for feeding China's baby pigs. Despite their advancements in dairy production, China has not expanded its cheese production, ensuring continued demand for U.S. whey powder exports.
