In 2023, China Processed 60.18 Million Tons of Milk
The primary product in China's raw milk production is cow’s milk, which reached 41.97 million tons in 2023.
Approximately 75% of milk is produced in northern China, while 74% of the population resides in the south. The "north-to-south" logistics redistribute up to 15 million tons of milk annually, driving up costs. From 2021 to 2023, China experienced a surplus of raw milk, leading to a price drop of nearly 30% and placing 80% of dairy farms at the brink of unprofitability.
Dou Ming noted that raw milk production growth rates in China were 7.1% in 2021, 6.8% in 2022, and 6.7% in 2023. Compared to 2008, when domestic production reached 32.36 million tons, production has increased by over 10.6 million tons, with an average annual growth rate of 3.6%.
However, despite this positive trend, the share of domestic production in the overall market decreased from 91.3% in 2008 to 71% in 2023.
“Today, we see a surplus of raw milk in China, with milk prices continuing to decline. As a result, most producers in China face challenging circumstances. Additionally, the sector is experiencing monopolization—over 55% of milk is produced by a single monopoly company,” said Dou Ming. He also highlighted that the top 30 dairy companies in China account for nearly half of the country’s total milk production.
“In 2024, milk prices in China were lower than in Europe—a new situation for our country. Approximately 25% of the total volume, or 17 million tons of milk, is imported by China. Interestingly, about 95% of the dairy products produced in China are eco-friendly, which is a stark contrast to the production standards of European products,” he concluded.
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