Anticipated Decline in China's Whole Milk Powder Imports for 2024 Due to Evolving Consumer Preferences
Source: The DairyNews
According to the Global Agricultural Information Network (GAIN) of the US Department of Agriculture, China's import of whole milk powder is expected to decrease by 3% in 2024, reaching 425,000 tons.
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This projection stems from the surplus stock accumulated in 2023 and a growing consumer inclination towards raw milk products over reconstituted alternatives.
The increase in raw milk production has resulted in a significant surplus, prompting the Chinese government to introduce subsidy policies aimed at stabilising the domestic processing sector. These initiatives aim to encourage higher production of whole milk powder. Notably, China heavily relies on processing raw milk into milk powder due to limited production of higher-value dairy products like cheese or butter.
The anticipated decrease in whole milk powder imports reflects a dynamic shift in consumer preferences and government efforts to manage the surplus in raw milk production. As China continues to navigate its dairy industry landscape, achieving a balance between consumer choices and government interventions will be pivotal in shaping the market in the years ahead.