Dairy self-sufficiency growth in China to reshuffle global trade, according to report

Growing self-sufficiency for dairy production in China will see a reshuffle for the global dairy trade, according to a new report from Rabobank. The report shows that China increased its self-sufficiency in milk production by 11 million metric tons from 2018 to 2023. The country’s whole milk powder (WMP) imports plunged from an average of 670,000 metric tons between 2018 and 2022 to a mere 430,000 metric tons in 2023. The report highlights that as China produces more dairy products domestically, New Zealand must seek alternative markets for its whole milk powder exports, leading to greater global dairy “export competition” and below-average milk powder prices. New Zealand accounts for less than 3% of world cow milk production, but over 25% of global dairy trade. Almost 1.3 million metric tons of milk – equivalent to 6% of New Zealand’s annual milk production – is now in search of import destinations in the form of WMP, skim milk powder (SMP), milkfat, and cheese, according to the ...