The Projection Indicates a Decline in China's Production of Whole Milk Powder for The Year 2024



Image credit: Author with Ai and Wei Cheng

Markets Milk Processing Processing
Whole milk powder production to decline by 3%
calendar icon25 January 2024
clock icon1 minute read

According to a recent report from the US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN), China's imports of whole milk powder are expected to decrease by 3% in 2024, reaching 425,000 tons.


This decline is attributed to the surplus in stocks accumulated in 2023 and a growing consumer preference for raw milk products over reconstituted ones.


The substantial surplus in raw milk production has led the government to introduce subsidy policies aimed at stabilising the domestic processing sector. These policies encourage increased production of whole milk powder.


Given that China does not produce significant quantities of higher-value dairy products like cheese or butter, most dairy companies process raw milk into milk powder for storage in accordance with the "Fresh Milk Purchase and Sales Contract."