China Imports of Whole Milk Powder Lowest Since 2012

Reduced purchases leave world markets in an over-supplied situation.

While U.S. cheese and butter commodity prices continue to strengthen, global markets remain at six-year lows, according to USDEC’s new issue of Global Dairy Market Outlook, which you can download in pdf format here. The main culprit is China.

China dairy imports were down nearly 40 percent in the first four months of the year—the equivalent of pushing back about 562,000 tons of milk per month. Put another way, that’s the same as if milk production from the five major exporters (EU-28, United States, New Zealand, Australia and Argentina) increased by 2.4 percent this year.

The majority of the decrease is a huge cut in imports of whole milk powder, down 53 percent from a year ago. This year’s purchases are the lowest since 2012.

In contrast, China imports of fluid milk and cream were up 27 percent in the first four months of the year, and imports of infant formula were up 18 percent.

To hear me discuss the global dairy market outlook with Bill Baker on Dairyline, a DairyBusiness radio show, click the audio bar below.

The U.S. Dairy Export Council is primarily supported by Dairy Management Inc. through the dairy farmer checkoff that builds on collaborative industry partnerships with processors, trading companies and others to build global demand for U.S. dairy products.  

Photo credit: 123rf.com.