China Demand for UHT Milk Soars; Opportunity for U.S.

China's appetite for imported UHT milk could more than quadruple from 2013 to 2020.

Ample evidence suggests a global opportunity to export ultra high temperature (UHT) milk to China is unfolding.

Chinese UHT milk imports are soaring. Demand scenarios conducted by USDEC suggest China’s appetite for imported UHT milk could more than quadruple from 150,000 tons in 2013 to at least 600,000 tons by 2020.

No less than seven major new plant projects are in the works around the world—in Australia, New Zealand, Ireland and Germany—focused on manufacturing UHT milk for export. Their combined output is still insufficient to meet demand projections.

“U.S. suppliers have an opportunity to play a bigger role in China’s booming UHT milk market,” says Ross Christieson, senior vice president, market research and analysis. To do so, Christieson says they need to concentrate on three things:

1. Developing the right products and packaging to meet Chinese needs, which are very different from U.S. needs.
2. Getting more price competitive (or accepting a smaller, niche share of the market.
3. Establishing price models that use longer pricing periods more akin to those offered by competitors.

Read more in the March 2014 USDEC Export Profile. Download the pdf file here. 

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.